Pension asset CGT exemption from NALI ends 30 June 2021

From

From 1 July 2021, if a non-arm’s-length capital gain is made by a segregated current pension asset on or after 1 July 2021, it will be treated as non-arm’s length income (“NALI”), meaning that it will be taxed at the highest marginal rate of 45% under section 295-550 of the Income Tax Assessment Act 1997 (“ITAA97”). This

continue reading

When you have seen one blended family – you’ve seen one blended family

From

Many lawyers talk about ‘blended families’ as if they are all pretty much the same. Like, if you’ve seen one, you’ve seen them all.  But that is not the case at all. There’s the classic style of blended family where two persons (who may be widows/widowers and/or divorcees) come together bringing with them one or

continue reading

SMSF death benefits – the case for flexibility

From

We often want certainty. In a world where there is increasing conflict between family members after a parent dies, and a greater propensity for children to challenge a deceased person’s estate, anything that promotes greater certainty with regard to estate planning is usually seen as a good thing. Same story with SMSF death benefits. With

continue reading

Borrowing strategy banned from testamentary trust concessions

From

Recently the government passed new laws which limit the treatment of income from a testamentary trust paid to minor beneficiaries of the trust as “excepted trust income” (which would be taxed at adult tax rates, including the all-important tax free threshold of currently $18,200 per year) only to property transferred to the testamentary trust from

continue reading

Why every property investor needs a Testamentary Trust Will

From

Whether you just own your own home, or you have an expansive investment property portfolio, you need to have a Testamentary Trust Will. A Testamentary Trust Will is simply a Will that contains one or more special trusts that act very much like a discretionary family trust that is only set up after you die.

continue reading

Beware estate planning issues with aged care

From

As our population gets older (and lives longer), the likelihood that an elderly parent will need to go into a nursing home is increasing. Usually this requires having to make a payment to the nursing home for the privilege of being accommodated there – either by way of a Refundable Accommodation Deposit (“RAD”) or for

continue reading

Can grandchildren be beneficiaries of BDBNs?

From

Often a member of a superannuation fund (whether self-managed, industry or retail superannuation fund) will want to provide for their spouse and, if the spouse should predecease them to their children and, if one of the children predeceases them, to the issue of the deceased child; that is, their grandchildren. Consider the position of Xander

continue reading

Probate – a detailed overview from SuperCentral

From

The process of probate may seem straightforward but, depending on the complexity of a client’s estate plan, along with family dynamics, it is not always easy to navigate. Here we cover some of the frequently asked questions about probate. What is probate? Simply, probate is the validating of a Will. Why does probate need to

continue reading

Helping one of your children with a home deposit

From

More parents are contemplating helping children enter the home market. Whilst the banks are starting to relax their lending criteria, with the now sky high prices of real estate in the major capital cities, the “Bank of Mum and Dad” is still very much in demand. But don’t just give them the money! There are

continue reading

Minimising assets in an estate that is subject to challenge

From

Brian Hor at Townsends Law thinks there should be some thought given and preparation around seeking to minimise challenges to an estate by making pre-emptive decisions, such as: Transferring assets before death Transferring assets during the owner’s lifetime to one or more persons being the intended beneficiary/ies of the assets after the owner’s death. Depending

continue reading