As I was dozing of I came to a resoluation. My grandfather recently told me that he updated the will so that my father would be an equal shareholder of his company to my grandmother if he dies before her. But that was done with the solicitor (has the will) not the accountant who has the trust deed. My understanding is that the roles of the various…[Read more]

Ive just been learning about bucket companies. If all the beneficiaries in a trust are paying the top marginal rate then you may divert extra profits into these. The tax rate on this is capped at 30%. Im not sure about this but my understanding is that you may direct this back to any of the beneficaries?http://www.tangibleassets.com.au/bucket_company.html

Yeh, prooves how much we learn at school. Some accountants dont really know much about trusts at all. (my partners accountant for example)

Oh, you mean "Info" is that were you learnt what you know about trusts?

Okay, thanks Terry. I will get back to you with more information (Hopefully in the comming weeks!)Also, do you know of any good books on Family trusts I could give me Grandad to read?As mentioned I gave him the one by N.E. Renton (2002). Do you know any more or more recent ones?

"But there may be ways to include you via other methods"Can you tell me about any of these?

Yes, I know for a fact there is a very large pre1985 asset in there with no capital tax payable. That leads me to another questions. Do you pay capital gains tax on property held in a trust purcahsed before 1985?

Yes, well if it come to that and my father ended up the appointer then we would include me and obviously my father as a beneficiary.But the existing deed would need to be ammended.

Also I dont know if they have had the deed updated. I would have thought the accountant should keep on top with managing such important changes such as GST!

If the appointer happens to be both of them, it means that whichever one of them dies first then the remainder is the appointer, If its just one, well then I imagine it would be my grandad in which case I just want to know who would be the appointer to bein the event of his death is.Im not listed as a beneficiary of the trust, therefore I dont…[Read more]

Oh, right. Thats good.  My grandfather really dosent understand the trust. I gave him a copy of family trusts by N.E Renton to read and he is reading it. He dosent even know what is a trust deed!It turns out he made the trust 35 years ago when a Jew introduced it to him. If both my grandparents are trustees I suppose it dosent really tell me mu…[Read more]

Spoke to the accountant today about the trust deedHello YYY accounting I would like you to have a look through your files for a copy of XXX Family trust, trust deed. Once you find it if possible I would like you to make a copy of it at which point I will organise a time to bring Mr XXX  (my grandfather) into your office to pickup a copy of it.   M…[Read more]

Okay, thanks. You answered my question.

Well to help, binding is (The trustee MUST distribute funds in a certain way) and non binding is (The trustee has discretion at hand when distributing funds)I read someone previously talking about binding nominations for a will. Which translates to me as that if the will is binding then the trustee of the trust (If assets in trust) OR the executor…[Read more]

Thanks Terry

30,000 is correct and according to this one you get $1500 in your claim if you earn anything under that amount (30K). As you earn over this amount it gradually reduces untill you earn 67,500 untill you get nothing back. Do you have to put a separate applicaiton in to get the LITO or does the accountant know to do this automaticlaly with your tax return?

Terryw wrote:
She has to overcome the PSI rules but it could be possible to set up a consultancy firm.I wouldn't say it outright illegal. Usually income if it is personal services income will be taxed in the hands of the individual even if it is received by a trust or company. If you can overcome the rules you can have it via the trust.…[Read more]

luke86 wrote:
I just had a look at the Pat IVA. It appears that you would not be allowed to purely 'stream' your parters income through a trust and distribute it to yourself to save tax. From the Part IVA document:In the absence of unusual features, therefore, Part IV A would notapply to such husband and wife partnerships. The sort of…[Read more]

Thats interesting. Here is the calculator.http://calculators.ato.gov.au/scripts/axos/AXOS.aspSo if you negatively gear your income right down to 16,000 then you would pay no tax on the first 16,000.Do you have to apply for and put a form in for the low income tax rebate, or does it go through automatically?

Thanks Terry, dont worry about the last sentence. It makes sense to me. Thanks for the advice on low income tax rebates.Thats a new thing that went through in 2010 isnt it?