The infamous Hells Angels motorcycle club has followed a more conventional form of protecting itself than one may have expected – filing a claim against online art marketplace Redbubble (http://www.redbubble.com/about) for infringing its registered trade mark/s .
Most advisers are aware of the benefits of making a Family Trust Election (FTE) for carrying forward revenue losses, however less commonly considered are the advantages of making an FTE for franking credit trading measures.
A key piece of information you can pass onto those clients whose wealth is tied up in structures – most likely a large proportion of your client base – is that having a Will simply doesn’t cut it for transferring their wealth when they pass away.
It is likely that you have heard about the ATO’s recent Interpretive Decision determining that having a life insurance policy inside an SMSF, where the policy is a consequence of a buy sell arrangement, may be in breach of the sole purpose test. If you have not yet heard of this decision, you can read the details here. So what does this mean for your clients?
When recommending a partnership structure for your clients, you are likely to be asked whether a written partnership agreement is necessary. Given that most advisers are aware that a written agreement is not required to establish a partnership at law, this can be difficult question to answer.
Trusts are useful tools in structuring your clients’ affairs; however care needs to be taken that each trust is set up appropriately, considering the long term benefit for your client.
The recent case of Verhelst v Tondeleir Pty Ltd as trustee for Verhelst Discretionary Family Trust & Anor reminds us of the dangers associated with families entering into trust arrangements without formulating clear objectives or giving sufficient consideration to matters of control.
On 14 December 2013, the Government announced that it would not proceed with long-proposed amendments to relax the application of the “45 day holding rule” for beneficiaries of testamentary trusts. Therefore, a FTE will almost certainly be required if an income beneficiary of a testamentary trust wishes to claim an amount of franking credits exceeding the “small investor limit” ($5,000).
A lot of our enquiries for fact sheets or seminars are based around superannuation. It’s a tricky area for both advisers and clients to wrap their heads around the many rules, risks and opportunities.
I’ve outlined a few home-hitting truths below, followed by my key hint on how to best help your clients navigate this complex wealth creation strategy.
If you believe a certain family member or loved one deserves to receive the benefits from your Estate when you have passed away, there is only one way to ensure your wishes are followed.
A recent decision of the Supreme Court of McIntosh v McIntosh  QSC 99 shows how important it is that you have an Estate Plan in place. This does not only mean having a valid Will, but also ensuring that assets which do not form part of your Estate, for example your Superannuation, are provided for
In the lead-up to its demise, it is common for companies to negotiate “payment arrangements” with the ATO for outstanding tax liabilities. These arrangements provide directors with valuable breathing space in terms of cash-flow, however they can also come back to bite directors in terms of personal liability when the company becomes insolvent.