We often want certainty. In a world where there is increasing conflict between family members after a parent dies, and a greater propensity for children to challenge a deceased person’s estate, anything that promotes greater certainty with regard to estate planning is usually seen as a good thing.
wills
Getting your estate documents together
Jonathan See of Townsends Business & Corporate Lawyers recently published an article on ‘Preparing for the Inevitable: Getting your estate documents together’. Below is an excerpt, the suggested list of documents clients can provide to Executor/s as part of their estate planning activities.
Mistreated parent → loss of inheritance
Can a child treat his/her parent badly and still expect a share of the parent’s estate? The latest case highlights the answer.
Borrowing strategy banned from testamentary trust concessions
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.
New testamentary trust law
New law closes loophole on Favourable Tax Treatment of Income from Testamentary Trusts.
Disadvantages of using conditional BDBNs
A nomination to a spouse is not automatically revoked on divorce or re-marriage.
Superannuation proceeds trust: excepted income changes
The recent Tax Act amendment on excepted income of testamentary trust distributions may potentially affect superannuation proceeds trusts (“SPT”) that are structured as testamentary trusts.
Advantages of using conditional BDBNs
As the super death benefit is not dealt with by Will and does not form part of the client’s estate, it will not be subject to a challenge to the estate.