Tax Risks in the 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: Loan Accounts, Division 7A and UPEs: Are They Getting the Attention They Require in the Estate Plan?

A list of assets and liabilities for the estate planning process can sometimes gloss over the fact that within certain entities that are owned, controlled or provide benefits, are loan accounts and UPEs that can have a significant impact on the administering of the estate. This session looks into the implications that can arise, both pre and post death and the strategies to manage, including:

• Does Division 7A apply when a company loan to a shareholder is forgiven after the shareholder’s death? (ATO ID 2012/77)?
• Can the timing of forgiving a deceased shareholder’s pre-existing Division 7A loan post death make a tax difference?
• Can Division 7A apply to an executor for a loan by a company to a shareholder before date of death? (ATO ID 2002/741)?
• How does Division 7A interact with the commercial debt forgiveness rules?
• Does the exclusion for debt forgiveness for reasons of natural love and affection in TD 2022/1 apply to deceased estates?
• Can the commercial debt forgiveness provisions apply to a forgiven loan owing from a trust to a deceased beneficiary?
• Strategies for a pre death loan account tidy up
• Case studies highlighting how overlooked related party loan arrangements can impact the administration of an estate

Session 2: Taxing Issue of Testamentary Trusts: Are they Always the Answer?

The will is generally the governing document for what is to happen to someone’s assets when they die. So, when could it be prudent for the will to include the establishment of a TT as a vehicle for intended beneficiaries to receive their share of the estate? This session explores this question, along with the tax aspects to consider, including:

• What family situations could benefit from implementing a TT?
• How minors can be eligible for normal adult marginal tax rates and when they wont
• What tax rates apply to the trustee of a TT if income is accumulated?
• The CGT implications, including:

• Transferring assets from the deceased to a TT (PSLA 2003/12)
• How the 50% CGT discount applies to TTs

• Stamp duty considerations when transferring property in or out of a TT
• Can non-estate assets (ie. assets in a discretionary trust) find their way into a TT?
• What are the vesting requirements of a TT?
• Case studies

Session 3: Act Now or Later? Tax Implications of Early Inheritances

It is not uncommon for a parent or grandparent to decide that a helping hand to the next generation now rather than later via their estate, is a more useful way of utilising their resources. Whilst there is a bit to think about before going down this path, if the asset is a CGT asset, or the funds are to be sourced from a CGT asset, that extra bit of thought might save tax dollars that are unwittingly applied. This session looks into the tax implications of an inheritance sooner rather than later, including:

• The tax implications of transferring a CGT asset for no consideration to a family member pre death
• The pathway and taxing points of CGT assets from the deceased to the estate to the ultimate beneficiary
• When and why it may be more beneficial in the future to have ownership of an asset in a testamentary trust
• The treatment of pre CGT assets - maximising the cost base for the next generation
• Planning for pre death unused tax and capital losses
• What are the stamp duty implications of transferring property:

• as an early inheritance to family members?
• via a will

• Tax effective tips and traps for planning inheritances pre and post death
• Case study