'Asset protection' is the phrase given to strategies that seek to keep assets out of harm's way. Want to know more about this strategy?
This is a big question. The answer is going to depend on a range of factors, but there are some general rules you can apply.
Download our comprehensive guide to controlling your family trust.
If you have a company then you have probably sat in a meeting with your accountant and heard the phrase 'that may raise Division 7A issues'. Everyone usually then grumbles and nodes wisely, and moves on... But you may be asking yourself, 'what the hell is Division 7A all about?' Glad you asked.
We all love our trusts, but unfortunately they don't last forever. They have an ‘expiry date’. When you reach this date, the Trust ends and its property must be distributed to beneficiaries. Before this time you need to consider who will be entitled to the assets, and what tax and stamp duty liabilities may be triggered. You also need to see if the date can be extended...
If you have a discretionary family trust, then chances are your accountant has mentioned ‘unpaid present entitlements’ or ‘UPEs’. No doubt you have just nodded wisely, but deep down, do you really know what this means?
Doctors earn their money by ‘doing things’. Performing surgery, diagnosing an illness. This is great from a ‘personal fulfilment’ perspective, but not so great from a ‘personal tax’ perspective.
People who say this are just demonstrating their ignorance. Here’s why. The ability to use a trust as a ‘tax loophole’ was pretty much closed out in the 1970-80s. To suggest that trusts somehow make tax disappear for the ‘wealthy’ is plain silly.
What is, and what is not, in your personal estate? This may sound like a academic question not worthy of a lot of thought. However, if you are in estate planning mode, it is critical that you answer this question correctly.
The concept of a 'bucket company' is used to describe a company into which distributions from a discretionary trust are made to cap the tax rate on the trust's income to the flat company rate of 30%.
This Brief outlines the structure, use, eligibility requirements and benefits of Special Disability Trusts
The short answer is that it depends on whether the trustee first falls within the class of potential beneficiaries, and then whether the trustee is specifically excluded from benefiting.
All of the lawyers I’ve worked with at Andreyev Lawyers have excellent practical knowledge, and are happy to work with professionals like myself to come up with solutions for our clients.
We were asked the other day if there is anything stopping a discretionary trust making a distribution to someone who has previously made a gift to the trust. This may seem like a simple question, but it isn't. As you will probably be aware, most (if not all) trust deeds in Australia exclude the person [...]
A Special Disability Trust (SDT) is a special type of trust that allows parents and immediate family members to plan for current and future needs of a person with severe disability. The trust can pay for reasonable care, accommodation and other discretionary needs of the beneficiary during their lifetime.