SUPERCentral News
Jane and Bill purchased a house on 1 July 2006 and occupied that house as their principal place of residence since that time. On 31 December 2018, when they are each age 80, they sell the house in order to move to more suitable accommodation.
A tailored or "conditional" BDBN is one which is subject to one or more special conditions which can make it a useful tool to deal with a variety of modern estate planning issues.
As soon as the lifetime income steam product has the benefit of the earnings tax exemption, the product will be assessed for transfer balances purposes and a credit will be made to the transfer balance account of the investor.
If the investor of a lifetime income stream product dies and the product is not reversionary (or reversionary and the reversionary beneficiary has pre-deceased) then the amount payable (if any - for example the investor could die after the life expectancy period) will be treated as a death benefit of the investor.
Join us for our next Bacon, Super and Eggs Breakfast Seminar, "In The New World Of Super.. Are Trusts The New King?", being held on 29 August 2017. Registrations are also now open for our September EPAdvantage 'Real Life Estate Plans' Course.
The short answer is no but there is a bit of a story. The reason SMSFs cannot issue these products is that the lifetime products are defined benefit products and SMSFs have not been permitted to issue new defined benefit products since 11 May 2004. However, there is an exception.
The new lifetime income stream products will have the benefit of the earnings tax exemption if the investor is in retirement phase (ie the investor has attained an unrestricted release condition - typically age 65 or being retired for super purposes).
John, aged 65, buys a new lifetime pension product with $500,000 which commences on 1 July 2018 and is in retirement phase on and from 1 July 2018. His life expectancy is, say, 20 years.
The product to qualify as a lifetime income stream must satisfy the following requirements:
From 1 July 2017 new types of income stream products can be issued.
The lifetime guarantee is not due to the superior investment skills of the product issuer and it is not due to the fact that the issuer of the product will finance the product out of their own pockets.
In Chapple v Wilcox [2014] NSWCA 392, a grandson made a claim for a family provision order under Chapter 3 of the Succession Act 2006 (NSW) in respect of the estate of his deceased grandfather. Under the will, the estate consisted largely of a grazing property and pastoral business which passed to Mrs Wilcox, the deceased's only child (and the grandson's mother).
A pension with Asset Test Exempt (ATE) status is a very valuable thing. If a pension has ATE status, then for then for the purposes of the Centrelink assets test, the capital value of the pension is either not counted at all (full or 100% ATE) or counted only as to 50% (partial ATE).
We've now entered the new world of superannuation! So if you have funds that are still in catch-up mode or are on different deeds, talk to us about our bulk SMSF conversion program.
First - this change only applies to limited recourse borrowings that arise under a loan contract entered into on or after 1 July 2017.
This measure was part of the May 2017 budget changes. The basic details are that individuals who are home owners can from the proceeds of sale of their principal place of residence, each contribute up to $300,000 to superannuation.
In this year's budget, the Treasurer announced two changes to the taxation treatment of Limited Recourse Borrowing arrangements (LRBAs).
A new client walks in. He is wearing a helmet covering his face, but he assures you that he has a good medical reason for doing so, so you let that one go by. And he seems to be potentially a good client (after all, he is dressed like royalty with all the robes and has a whole entourage of guys in hard white suits - maybe he is an Arabian prince or something??).
Our bulk update service will pave your way to the new superannuation world post 1 July 2017. The legal review and update process is easy and highly cost effective, and relieves you of the enormous inconvenience and cost of arranging ad hoc deed variations for your entire client base.
The ATO has determined that the "safe harbour" interest rate where the acquired property is real estate will be - 5.65% pa (previously 5.75% pa).