What happens to a testator’s Will after divorce?

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Going through a divorce may upset the best laid out estate plans by partially or completely revoking a couple’s Wills. Jennifer and Thomas were married for 5 years before Jennifer filed for divorce earlier this year. They have 2 children under the age of 10 and previously executed a Will appointing each other as the […]

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Can an SMSF lease residential property to a related party?

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“No” is probably the first answer that comes to mind but it is actually “maybe”, if we are to believe the full Federal Court in the judgement it handed down in the Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation [2018] case last month. One of the issues the Court examined is whether the leasing of a […]

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Court sheds light on an enduring attorney’s right to extend a BDBN

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A significant ruling was recently handed down in the Queensland decision of Re Narumon Pty Ltd regarding an attorney’s right to extend a member’s binding death benefit nomination. The facts Mr Giles, the sole member of his SMSF, appointed both his wife and his sister (“Attorneys”) as his enduring attorneys for both financial and health […]

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The First Home Super Saver Scheme

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The First Home Super Saver Scheme (FHSSS) is intended to assist individuals entering the property market by allowing them to save on tax and receive higher earnings than if the money was invested in a bank account. What is the scheme? From 1 July 2018, an eligible member may apply to withdraw certain contributions (and […]

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New LRBA rules to apply after 1 July 2018

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A new piece of legislation giving effect to proposed measures announced during the 2018 Budget in respect of limited recourse borrowing arrangements (‘LRBA’) is currently being discussed by Parliament. What are the new rules? It is proposed that a member’s share of the liability under a limited recourse borrowing arrangement entered into after 1 July […]

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Keeping your SMSF compliant when overseas

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SMSF trustees need to be careful when going away overseas for extended periods as they face many risks including losing residency These include: Failing the Australian residency requirements for the SMSF: these require the SMSF to be established in Australia, the Central Management Control (‘CMC’) to be ordinarily situated in Australia and to pass the active members […]

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When inheriting from friends not family

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It’s not often that a person gets the chance to inherit the estate of someone who is not a member of their family.  But it does happen and has its own particular issues. Megan is a wealthy widow whose only family is a brother (Andy) she is not particularly close to.  Her closest friend is […]

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Auditor says ‘safe harbour’ terms are mandatory – what now?

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Would an SMSF trustee decision not to adopt the safe harbour terms from the ATO’s Guidelines in relation to a related party loan breach the Superannuation Industry (Supervision) Act SIS (Act)? The ATO’s Practical Compliance Guidelines PCG 2016/5 (“Guidelines”) provide safe harbour terms which, if complied with, mean the related party loan will be treated […]

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Can a financial manager be involved in client’s SMSF?

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We recently had to consider a scenario where a Financial Manager considered establishing an SMSF on behalf of a heavily disabled client (“Individual”) and act as the sole director of the corporate trustee. A Financial Manager (as defined in the relevant Guardianship Act) is a person appointed by the Civil and Administrative Tribunal (“Tribunal”) to […]

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Can a Court override your right to decide whether or not to receive medical treatment?

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An individual can normally consent or refuse any medical treatment.  However, this right could be taken away by the Courts in some extreme circumstances. A Court’s ability to override the right of a person who lacks mental capacity to refuse medical treatment in extreme circumstances was highlighted in a NSW Supreme Court case earlier this […]

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