At our upcoming Tax Aspects of Death and Estate Planning Conference we tackle some of the key areas of the estate plan including Distributions and Loans impact, Navigating Tax Bombs in Testamentary Trusts, Dealing with Specific Assets in the Estate Plan and Taxing Issue of Discretionary Trusts. 

Our key speakers for this event cover some of the most important topics. 

1. Daniel Smedley, Principal, Sladen Legal in Melbourne will tackle the topic of Division 7A, Section 100A and Other Inter Entity Loan Issues Impacting the Estate Plan. 

A balance sheet review of loans between associated entities is a necessary, yet sometimes overlooked, procedure in developing an estate plan. Unravelling these loans after the death of an affected party without proper forethought can be messy and result in unintended consequences. 

He will cover the issues and strategies available when such loans are identified, including:  

• What are the issues arising with associated entity loans that are going unaddressed until a deceased estate is being administered?  
• Addressing issues where loans owing to a deceased estate are funding business operations 
• How to deal with Division 7A loans and issues in the estate plan  
• The unforeseen tax implications that may arise when writing off loans by journal entry  
• How timing the forgiveness of a loan can impact the tax outcome (ATO ID 2012/77)  
• Is recent ATO section 100A guidance material impacting on estate planning?  
• How to manage loan issues associated with bucket companies  
• Strategies pre death to minimise adverse tax consequences for a deceased estate, including: — reviewing dividend policies and the impact on loans — ensuring loans are tax compliant  

These topics will be followed up with a case study to bring it all together. 

2. Mark Molesworth, Partner, BDO, Brisbane, Qld will take delegates through the complexities of tax legislation in his topic Receiving Funds from a Foreign Trust: What’s Assessable May Not Be What You Think. 

The complexities of tax legislation can often reveal unexpected implications, as exemplified by recent ATO guidance on section 100A. However, another provision, section 99B, has received limited attention despite its potential for broader application.  

This session explores the implications of section 99B when receiving capital distributions from foreign trusts, including:  

• When does section 99B apply?  
• Are there any situations where payments or benefits from an Australian trust could attract section 99B?  
• How section 99B impacts on: — benefits flowing from a non-assessable capital gain from a non-resident trust (TD 2017/23) — capital losses and the 50% discount for the beneficiary (TD 2017/24)  
• Could a loan from an overseas trust be treated as income?  
• How section 99B can apply to distributions from a deceased estate  
• he interest regime the ATO can apply to amounts assessable under section 99B  
• If receiving payments, benefits or assets from a foreign trust, what records should be maintained to minimise the risk of an adverse tax outcome?  

Mark will also wrap this up in a case study. 

3. Super Strategies for the Estate Plan - Pre and Post Death will be tackled by Jennifer Dixon, Practice Leader, Moores, Melbourne, Vic. 

Whilst death duties in Australia are a thing of the past, the taxing of superannuation death benefits is a topic gathering momentum to becoming very much front and centre in the minds of fund members and their advisors.  

This session explores the tax impact associated on the death of a fund member, including:  

• The different ways super death benefits flow through to the beneficiaries depending on the estate planning documentation, if any, in place  
• The circumstances that support an adult child or parent being either interdependent or financially dependent on the deceased and why it matters (Tratter v Aware Super [2023] FCA 491)  
• Planning strategies to minimise the tax impact of superannuation proceeds to the next generation  
• How pre death withdrawals can impact on both tax and the future recipient of those funds on death  
• Strategies that direct the components of a deceased’s estate to the tax preferred beneficiary for that particular asset, including the effect of incorporating a testamentary trust as a superannuation proceeds recipient  
• Planning for a potential tax impact from life insurance proceeds within superannuation  

Jennifer will also case studies exploring the impact of the proposed 15% tax on super balances over $3 million. 

These are just some of the crucial topics presented at this year's Tax Aspects of Death and Estate Planning Conference to be held in Melbourne on Monday 23 & Tuesday 24 October 2023.