Bankruptcy Trust in Wills

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Bankruptcy Trust in Wills

Smart people do not hold assets in their own name. Thus they keep assets out creditors’ reach. This is useful for business owners as well as the wealthy. Lose in court? You lose your assets. But you generally do not lose the assets held in your ‘safe harbours’: your spouse […]

Financial Planners witnessing POAs

The Statutory Regulations 2018 (Cth) allows financial planners and advisers to witness Commonwealth statutory declarations. This has been the case since 18 September 2018. This means that financial planners are in the group of ‘authorised witnesses’. This is long overdue and I applaud the FPA and many other groups, including […]

A warning to accountants. Chadbourne v FCT.

A warning to accountants Commonly Dad borrows money cheaper than his trust. In this recent case, Dad borrows money from the CBA and gives it to his trust. Everything goes wrong. In Chadbourne v FCT [2020] AATA 2441: the taxpayer, Mr Chadbourne, borrows money from CBA he on-lends the money to […]

Stamp duty in NSW just to change the Trustee

At times you may wish to change the trustee of your trust. There is no change of beneficiary. The same beneficial owners are still there. There is no change on who the equitable owners are. But in NSW you may have to pay ad valourem stamp duty on the market […]

Centrelink attacking innocent Grandparents

A rather worrying trend is Centrelink attacking people that are unaware that they are mentioned in a Family Trust. For example, the high risk son often makes Mum the Appointor or a Default beneficiary – for asset protection. Mum has never seen a cent of the Family Trust but the […]

Four things your Accountant should do differently this EoFY

It is important to talk with your Accountant before the end of the financial year and work through your tax year-end planning issues before 30 June. Thanks to COVID-19 it is not just the usual year-end issues such as bad debts, trading stock, losses, super and the $150k immediate capital expenditure (well […]

Is it legal to build your parent’s Wills

Is it legal to build your parent’s Wills in Australia? Children are worried about the defacto death duties of CGT, income tax and stamp duty. Adult children, in particular, don’t want to pay the 32% Super non-dependency tax. Basic Testamentary Trusts and Super Proceeds Trusts are out of date. The 3-Generation Testamentary Trusts […]

How to sign a will in quarantine

How to sign your Wills when you are in quarantine Due to the Coronavirus, best practice is to not be with strangers or non-family members. However, a Will is only witnessed by strangers or persons that are not related to you. During periods of ‘lockdown’ in your community when you […]