SMSF Property development – issues to consider

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Can an SMSF be used to develop a property? Yes, but there are some superannuation compliance issues that arise when considering whether to develop a property in your SMSF. John and Mary want to knock down and rebuild a property in their SMSF Let’s consider an example of John and Mary who own a property […]

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Can grandparents protect their grandkids’ inheritance?

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If their kids don’t get on with one of the grandkids maybe the grandparents should act to protect that grandchild’s inheritance. Being an estate planning lawyer means very often having to ask the hard questions – questions about their family that can make people a little uncomfortable.  I had to ask one of those the […]

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Loans under Division 7A and the ATO’s Safe Harbour guidelines

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A limited recourse loan by a member’s family trust to their SMSF might be a Division 7A loan.  Can the loan comply with all the rules if it is in fact both types of loan? A recent enquiry has allowed Townsends Law to visit the question of when will a loan be deemed as a […]

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Related party loan to SMSF – when is a loan not a loan?

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John is the sole member of his SMSF and is the sole director of the fund’s corporate trustee. After seeking financial and tax advice on the benefits of owning a property in his SMSF, John decides to sell his investment property valued at $1m to his SMSF. As his SMSF’s available balance is $200k short […]

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Brace yourselves: A claim against your Will is coming

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It seems that along with dragons and Westeros, the idea that a person has substantial discretion in how to gift their estate on their death is a myth. Those left underwhelmed by the conclusion of the final season of Game of Thrones need look no further than the recent ruling on Steinmetz v Shannon [2019] to satiate […]

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Not sure where to start? Ask.Will™

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Although most Australians know the importance of having a valid will, the nuances of how — and what — can be challenging. Understanding and using those nuances is what turns a simplistic will into a truly valuable and effective estate plan. To help make the process simpler, Townsends Lawyers offers a suite of tools and […]

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The pitfalls of a homemade Will

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While homemade Wills and Do It Yourself Will kits may appear to be an ‘easier’, ‘timely’ and ‘cheaper’ alternative than instructing a lawyer to draft your Will the recent Victorian Supreme Court case of Re Hely; Application by Arbuthnot & Donaghue [2018] is a reminder of some of the pitfalls which may arise when a homemade Will […]

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Can an SMSF be liable for foreign purchaser surcharge duty?

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John and Mary, a married couple, are members and individual trustees of their SMSF and their benefits in the fund represent 10% (John) and 90% (Mary) of the total value of the fund respectively. John is a foreign person for the purposes of the surcharge duty in NSW. Is the SMSF subject to surcharge duty […]

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Where is your trust deed?

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Document provider, SuperCentral, gets calls from SMSF clients weekly asking where their trust deeds are stored. Peter Townsend from SuperCentral said that he sometimes feels like he is running a detective agency. “We are often asked to provide a signed copy of a fund’s deed, usually at a time when it is of utmost importance, […]

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Superannuation death benefits are a minefield and arguably in need of simplification and reform

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It’s a fair question to ask: What happens to a family if there is not an estate plan in place and change/tragedy occurs? Who has control? Quite simply, your family’s estate plan is then in the hands of the Courts as they decide which assets go to which parties. It’s an involved process, and the […]

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