Taking Care of Tax in the Estate Plan – a recorded lunchtime online conference

Duration: Approximately 2.5 Hours

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.

One registration can be shared by colleagues within the same firm utilising the same login.

THE PROGRAM

Session 1: The Ins and Outs of Taxation on Death

Although Australia does not have an inheritance tax or death duties, death may still have tax consequences for the estate and beneficiaries. This session provides an overview of Division 128 of the 1997 Act and how it applies to CGT assets held by the testator on death, including consideration of:

• What kind of CGT events can be triggered by death?
• The main residence exemption and death
• What are the exceptions to the general rule that a capital gain or loss on death is disregarded?
• What are the CGT consequences of an asset passing to the executor and then to a beneficiary?
• How is the trustee of a testamentary trust treated: the ATO position in PSLA 2003/12
• Timing of the transfer of estate assets for CGT purposes

Session 2: The Long Shadow of Unpaid Present Entitlements

An increasing number of private family groups have unpaid present entitlements sitting in the group with no strategy in place as to how to eliminate the liability. This session considers how unpaid present entitlements can impact on estate planning, including exploration of:

• How do unpaid present entitlements arise?
• Forgiveness of unpaid present entitlements:
  • Does forgiveness of an unpaid present entitlement in the will constitute a specific gift for the purposes of family provision claims?
  • Are there any tax consequences triggered on forgiveness of an unpaid present entitlement?
• Managing unpaid present entitlements in bucket companies:
  • Pre versus post-16 December 2009 unpaid present entitlement position
  • What happens when the trust vests?
  • Impact of unpaid present entitlements on value of the estate

Session 3: A Ticking Tax Bomb: Options for Managing a Trust About to Vest

The issue of trust vesting has become particularly important in recent years, especially for those about to reach their vesting date with the associated obligations such as distribution of the assets. There may be a number of reasons to delay this date, including for financial and estate planning reasons. This session will look at the key considerations around trust vesting and the steps that can be taken to minimise or avoid potential liabilities, including:

• Auditing the trust deed and preparing for the future
• The concepts of perpetuity and vesting
• What happens on the vesting date?
• CGT and duty liabilities - how and when do they arise?
• Other reasons for delaying the vesting date
• Extending the vesting date under the terms of the trust deed
• Court applications for extension - relevant legislation and cases
• Rulings TR 2017/D10 and TR2018/6 - how the ATO will view trust vesting and date extensions
• The South Australia solution - availability and practicalities
• What to do when vesting is the only option