Estate planning Succession Trusts

Estate planning

Source: Victoria

Published Date: 10 Oct 2013

 

Sorry, this is subscriber only content.

If you're not yet a subscriber, to gain access to this material and much more - Subscribe Now.

Already a Subscriber? Login now

Already a Subscriber? Login now

In the 2011–12 Federal Budget, the government announced that it would amend the CGT provisions relating to deceased estates to ensure that they function properly. This includes legislating the current ATO practice of allowing a testamentary trust to distribute an asset of a deceased person without triggering a CGT liability.These proposed changes, together with the removal of the LITO in relation to the unearned income of minors, has brought into focus the continued use of testamentary trusts and their income tax and asset protection benefits.

This paper examines:

  • the fundamentals of wills, probate and testamentary trusts
  • the taxation of testamentary trusts (including whether income must be distributed each year)
  • excepted trust income and distributions to minors
  • adding to the corpus of a testamentary trust 
  • the asset protection benefits of testamentary trusts including:
    • beneficiaries, appointors, powers and limitations of testamentary discretionary trusts
    • the use of capital protected trusts and their taxation and duty consequences
    • how to grant a lifetime occupation right without creating a life interest.

Individual Session

Estate planning

Author(s): Rob Jeremiah CTA , Amanda Morton
Materials from this session:

Details

The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))

("TTI")

The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.

Tags

Estate planning Succession Trusts Miscellaneous Income tax 2013

Share this page