Recently the government passed new laws which limit the treatment of income from a testamentary trust paid to minor beneficiaries of the trust as “excepted trust income” only to property transferred to the testamentary trust from the deceased’s estate or from property that represents an accumulation of income from property from the deceased’s estate.
testamentary trust
New law clarifies minor’s tax on testamentary trust income
A minor pays tax at adult marginal rates on income received from a testamentary trust. The new law seeks to stop non-estate assets making their way into those trusts in order to increase that income and access those marginal rates.
The pitfalls of a homemade Will
While homemade Wills and Do It Yourself Will kits may appear to be an ‘easier’, ‘timely’ and ‘cheaper’ alternative than instructing a lawyer to draft your Will the recent Victorian Supreme Court case of Re Hely; Application by Arbuthnot & Donaghue [2018] is a reminder of some of the pitfalls which may arise when a homemade Will has been prepared.
A case study on moving quickly to protect assets
After their father died, John’s and Mary’s mother was grief-stricken and for several years had little or no social life. Gradually, though, she began to broaden her social network and eventually she met a nice man who shared her interests. John and Mary quite liked Neville, though they never really thought of him as part […]
Estate planning and intergenerational transfers: Consider Insurance Bonds
Richard Atkinson from Austock Life spoke today at the Sydney session of its Taking Control of Estate Planning adviser roadshow.