The tax landscape is constantly evolving and the challenges facing advisers continue to grow. This half day masterclass is designed for lawyers and accountants seeking to deepen their knowledge of estate planning tax issues.

Estate Planning Strategies when the Family Trust is Vesting

When a family discretionary trust vests, beneficiaries’ interests become fixed, and significant tax consequences may arise. The ATO’s 2018 tax ruling on the vesting of trusts makes it clear that once a trust vests, there is no action that can be taken to turn back the clock for tax purposes. This session explores the options available to advisers when clients are living with a trust that has vested, or where a vesting date is imminent. It covers:

• The trust has vested - now what?
• Understanding TR 2018/6 Income tax: trust vesting - consequences of a trust vesting:
• Does vesting trigger any income tax consequences?
• Unwinding an ineffective distribution - what do trustees need to consider?
• What does the ATO ruling mean for the second generation of family trusts?
• Varying the vesting date:
• When is it possible?
• Will extension of a vesting date trigger resettlement?
• Planning around an inevitable vesting - directing the trust assets and exploring restructuring opportunities 
• Is it time to revisit South Australian trusts?
• Is it possible to convert an existing trust to a SA trust with perpetual succession?
• The degree of connection required to SA

Dealing with Loan Accounts and Unpaid Present Entitlements in the Estate Plan

Loans and unpaid present entitlements are a given with any family group with a complex structure in place.  Ensuring that they are dealt with appropriately is key to ensuring your estate plan holds up. This session covers:

• Finding the credit and debit loans and UPEs in the family structure

• Dealing with loans:

  • forgiving them before death - CDF rules, Div 7A and other tax risks

  • forgiving loans at death

  • assigning the loans to third parties for less than market value

  • asset protection implications of dealing with loans

  • traps in dealing with loans from trusts

• Dealing with unpaid present entitlements:

  • basis on which you can extinguish a UPE

  • UPEs to children - assignment and extinguishment

  • paying out the UPE

  • dealing with the UPE in the will

Dealing with Business Succession Asset Protection in Family Businesses

Putting in place a business succession plan for your family business is only half the battle. The other half is ensuring it properly protects assets. Both must be aligned to maximize control and minimise disputes down the track. This session examines the key issues, including:

• The role of the appointor in family business succession planning

• Understanding the importance of the trustee of the family trust in business succession

• Asset protection and entity structuring – controlling the threat of litigation

• Managing the threat of competing family interests in business succession

• Factoring in retirement plans early as an asset protection strategy

• Creating a family constitution or deed of family arrangement

• Use of special purpose trusts

• Assessing when to assign rights in property

Gerard Basha, Partner, Bartier Perry, Sydney (Chair)

Paul Evans, Partner, Makinson d’Apice Lawyers, Sydney

Raymond Lim, Solicitor-Director, TEP Legal, Sydney

Scott Whitla, Partner, McCullough Robertson, Brisbane

Multiple registration discount?  If you would like to send more than one person from your company to this masterclass, please ask Jenna about the discounts available for multiple registrations:  The more you send, the greater the discount.  [email protected] or phone (03) 8601 7729.