estate planning

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27/02/2017

Even a pre-1985 family home can be subject to CGT

  CGT Family Home - that does not seem fair Death and Probate Duties were abolished by 1981. However, in 1985 the Federal Government introduced Capital Gains Tax. CGT earns the Government more money on deceased estates in a single year than in the cumulative history of State death duties. […]
07/11/2016

Mum dies, baby pays 66% tax

Taxing minor children upon parent's death - use of Post-Death Testamentary Trust In a perfect world, you build a 3-Generation Testamentary Trust in your Will. When you die, your Estate is tax-free for 80 years. A 3-Generation Testamentary Trust washes out the de-facto death duties: Capital Gains Tax, Stamp Duty […]
29/03/2016

Reversionary Pension to love child

Muriel’s husband died a few years ago. At 54 she fell in love again and was the oldest mother in her city. She called her love child Colin. Her two oldest children, Ian and Brian, are successful engineers. Muriel's assets are all in her Self-Managed Super Fund. As the sole director […]
26/03/2016

Client was not well enough to make a Will – what happens now?

In March 2016 the Court created a statutory Will for a man who had suffered serious injuries in 2012. This resulted in ongoing short-term memory loss. He wanted to make a Will. While he could identify the persons whom he wished to benefit, and demonstrated an understanding of how the Will operates he […]
19/10/2015

Court rewrites Will to save tax

Court rewrites Will to save tax Question: Our client is threatened by divorce. His dying dad is leaving everything to him. His dad has Alzheimer’s disease. Can we use a Power of Attorney to rewrite the Will or can we get the Court to alter the Will as per the Matsis Case? […]
19/10/2015

Joint tenancy is old fashioned and dangerous

  Joint tenancy is old fashioned and dangerous   QUESTION: Please explain why you don’t like assets being held as joint tenants? As an accountant, I estimate that 80% of my clients own real estate as joint tenants. ANSWER: Back before 1980, Death and Probate Duties existed. At that time […]
15/10/2015

Estate Planning – New dangers

Estate Planning - new dangers When I started drafting Wills in the 1980s: 1. A lawyer had no obligations to the beneficiaries (only to the Will maker – who is dead by that stage); and 2. Accountants and advisers had no obligation to warn a client to make a tax […]