Excess transfer balance determinations now being issued by ATO

From

The ATO determines whether a taxpayer has exceeded the transfer balance limit of $1.6m and if a taxpayer has exceeded the $1.6m limit, the ATO must issue an excess transfer balance determination (ETB determination) to the taxpayer. An ETB determination means the taxpayer has too much super in pension phase. The ETB determination will specify […]

continue reading

SUPERCentral announces launch of estate planning tool Ask.Will™

From

SUPERCentral has announced it would be launching a first-to-market, estate planning tool, Ask.Will™ Ask.Will is a new client support service that helps Advisors to open estate planning discussions with their client, through a simplified process that provides clear directions on the key areas that a client needs to consider in the development of an effective […]

continue reading

10 ways to protect your SMSF from loss of mental capacity

From

If you have a self-managed superannuation fund (SMSF), you need to plan ahead to ensure that it can still keep going if you lost mental capacity due to dementia (or other reasons such as suffering a stroke). Otherwise the fund’s assets and operations could be frozen, resulting in losses from being unable to buy or […]

continue reading

First Home Super Saver Scheme – Overview

From

Under the First Home Super Saver Scheme (FHSS Scheme), eligible super members who make voluntary superannuation contributions can subsequently withdraw those contributions (and associated earnings) from the super system in order to acquire their first home.  The withdrawn contributions and associated earnings is the FHSS release amount. While the FHSS release amount, when paid, will […]

continue reading

The next two months may be last golden opportunity for LRBA

From

The Government is proposing the introduction of new measures that will impact all Limited Recourse Borrowing Arrangements (LRBA), entered into or after 1 July 2018.  These measures, if enacted, will include a member’s share of any outstanding LRBA debt in the calculation of their total superannuation balance, which may have a flow-on effect on that […]

continue reading

Reversionary TRISs – Government acts to resolve issue

From

The Government has now moved to resolve the issue of reversionary TRISs, which has been dragging on since 1 July 2017 when the “Fair and Sustainable Superannuation” changes commenced. The reversionary TRIS issue is simply that when a reversionary pension transfers on the death of the primary pensioner, the pension is now a death benefit.  […]

continue reading

Shorten’s proposal will have proportionally greater adverse impact on retirees with small balances than retirees with multi-million $ balances

From

Mr Shorten’s proposal announced this week that cash refunds of excess franking credits should be scrapped will have a greater proportionate adverse impact on a retiree with a $500,000 balance than a retiree with a $5m balance. If implemented, a retiree with only $500,000 in super will not be entitled to any franking credits (as the retiree […]

continue reading

Beware the estate planning transfer balance cap

From

So what is this “estate planning transfer balance cap trap” that can arise from adopting the mirror reversionary pension strategy? More importantly, is there a way to avoid it? Well, it all stems from how the Transfer Balance Account works. Let’s begin with a bit of a refresher: As we all know, the Transfer Balance […]

continue reading

Are tailored BDBNs the magic bullet for SMSF estate planning?

From

A tailored BDBN is one which is subject to special conditions which can make it useful to deal with various modern estate planning issues. One common condition is to impose a “cascading” succession of nominees in case the primary nominee fails to survive the fund member or fails to remain an eligible recipient of the death […]

continue reading

Family trusts more important than ever

From

Family trusts have always been an important structure for business planning, tax planning and estate planning. This is mainly due to their tax efficiency, asset protection, flexibility and succession possibilities. But now, family trusts are increasingly being used for retirement planning purposes since the Government introduced more measures to limit the ability to make both […]

continue reading