Tax Issues and the Estate Plan - a series of 3 video webinars

Program 1: A Ticking Time 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

Program 2: Unpaid Present Entitlements: What Can Go Wrong After Death

If left unmanaged, UPEs can create considerable tax nasties in the estate plan. This session examines covers the potential issues that may arise and provides best practice guidance on how these can be managed or mitigated. It covers:

• What are UPEs and how do they arise?

• The risks to the family business if they are called in

• UPEs and how they relate to payment of estate liabilities and family provision applications

• Tax considerations, deemed dividends and potential Division 7A problems

• How to deal with UPEs in the estate plan

  • Can they be repaid?

  • Forgiveness and gifts in the will

  • Appropriation

  • Disclaimer

Program 3: Nothing is Certain Except Death and Taxes: Tax Issues Upon Death

While death duties in Australia are long gone, death may still trigger tax consequences for the estate and beneficiaries. It pays to be on the front foot. This session provides guidance on the key tax issues estate planners need to consider, including:

• 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?

• Tax obligations of executors and other legal personal representatives
• ATO guidance in PCG 2018/4 Income tax - liability of a legal personal representative of a deceased person

• Timing of the transfer of estate assets for CGT purposes