Estate Planning and the Family Home: The Tax Imperatives

A willmaker may sometimes see the need to look further than having their assets realised or transferred to intended beneficiaries. Peace of mind may be gained by ensuring that an ongoing roof over a beneficiary’s head is more important than providing an upfront legacy. This session looks into how the plan can be achieved and the tax implications of doing so as detailed in TR 2006/14, including:

• The difference between a life and remainder interest in property held on trust, a legal life and remainder interest and a right to reside
• What are the CGT consequences of creating a life and remainder interest in property on trust for:
  • the original owner?
  • the trustee?
  • the life and remainder owners?
• What if beneficiaries of a will agree to realise the property originally intended to be applied to life and remainder interests?
• What are the CGT consequences on the death of the life interest owner?
• Does PS LA 2003/12 apply to property transferred to remainder beneficiaries on the death of a life interest owner?
• Pros and cons of establishing life and remainder interests in property inter vivos or via a will
• Strategies for providing a lifetime roof over the head of a beneficiary
• Case study – parents subdividing to demolish home and build two units, one for them and one for a roof over the head of one of two siblings