Death and Taxes: The Tax Effective Estate Plan – a recorded lunchtime online conference

Hear from the experts at this online conference. You can watch it on your computer or on your portable electronic device from anywhere.

The conference will be based on our highly successful video webinar technology: there'll be a chairperson and presentations.

THE PROGRAM

Session 1: The Deceased Estate: Who Pays the Tax?

During the stages of administration of a deceased estate, a beneficiary may become presently entitled to the income. It is important to recognize this to determine who is responsible for the payment of income tax on that income. This session covers the various stages of administration, including:

• Can a beneficiary be presently entitled to estate income prior to the estate being fully administered?
• What if payments of income are paid to the beneficiaries whilst the estate is in administration?
• When is a deceased estate fully administered?
• Does the estate have to be wound up for beneficiaries to be presently entitled to the income?
• How is the income of a deceased estate taxed in the financial year it is fully administered (IT 2622)?
• Deceased estates and CGT assets (TR 2004/D25):

• when does a beneficiary have absolute entitlement?
• CGT event E5 and the Division 128 exclusion
• the fungible asset test
• worked examples

• The taxing of a deceased estate:

• for the first three income years after death more than three years after death

Session 2: Tax Effective Dealing of Superannuation as Part of the Estate Plan

As superannuation is increasingly becoming a substantial amount of a person’s net worth, it is important that it be given a high priority in the estate planning process. This session examines the key issues, with a focus on the tax effective use of superannuation proceeds trusts. It covers:

• The tax consequences of paying out superannuation (dependants/non dependants)
• When is it beneficial to consider a superannuation proceeds trust?
• Does it matter if superannuation proceeds go via the deceased estate to a superannuation proceeds trust under a will or direct from a superannuation fund?
• What are the tax benefits?
• Have the changes in section 102AG ITAA 1936 had an effect on superannuation proceeds trusts?
• Does it make a difference if the death benefit is coming from an SMSF or an industry fund?
• How does the binding death benefit nomination fit in if the intention is to set up a superannuation proceeds trust?
• Case studies

Session 3: Split you the Difference? Trust Splitting as part of the Estate Plan

An estate plan may include reducing involvement for some and increasing responsibility for others. Or it may pre-empt potential conflict between family members and look to segregate decision making regarding trust assets. Whatever the purpose, care needs to be taken when this action relates to trust splitting to avoid unintended tax consequences. To assist your understanding, this session includes:

• What is a trust split?
• Situations where the arrangement doesn’t align with examples in TD 2019/14 and a private binding ruling may be prudent
• When a trust split could be considered a resettlement
• The tax consequences if considered a resettlement
• Still only one trust income tax return required for a split?
• Three children as beneficiaries of a testamentary trust considering a trust split. A case study of the do’s and don’ts
• Further examples exploring various scenarios