No conclusions reached. Obviously the PSI rules need to be investigated.

When deciding how much is relevant to employ me as a bookeeper what would be a good resource for deciding how much would be appropriate to funnel through a trust?I mean I know there are many websites outlining average salories by hour in various roles but is there an official one which is perhaps run by the government giving a ballpark figure…?

Terry, sorry I dont know what are the PSI rules?

Okay, thats great. Also a fair call to. I could be employed by the trusts company as a bookeeper for a reasonable hourly rate which is comparable to other people doing a simular line of work and then it may be acceptable to the ATO.

http://www.ato.gov.au/content/37495.htm

Okay, here you go. Part IVA (as per paragraph three above) "A penalty of up to 50% of the tax avoided may also apply, although the law allows this penalty to be reduced in appropriate circumstances. If you have a reasonably arguable position the penalty will not exceed 25% of the tax avoided".So basically my understanding from this is that if you…[Read more]

General principlesArrangements where personal services income is alienated (for example, because your personal services are contracted through your company, trust or partnership) and taxed at a lower rate than if you had received the income yourself may attract Part IVA, particularly where your remuneration is less than commensurate with the…[Read more]

Im having a look now, can you find that bit for me? Im reading about Alienation of personal services income. Do you know which tabs talks about that example?

Well it seems legit. I mean if it is "our" income and my income is low and I know there are certain laws that allow you to funnel atleast part of your partners income through a trust. Perhaps the laws changed but I have heard this type of stuff being done in the past. But perhaps not anymore…Cheers

What is the significance of the principal beneficiary?If the new appointer (or Next appointer) is not stated in the trust deed then it should be stated in the will. I read on a google search someone saying that if the next appointer is not stated in either of these then the executor becomes the appointer. What do you know about this rule Terry?

I beleive the most precious thing in the universe is not the love between husband and wife (Often termed reciprical, and short lived), but the love between parent and child (Unconditional and on-going). I think family structures should focus on the relationship of greatest importance as being this relationship over all others. Typically in our…[Read more]

I didnt realise you could be appointer and trustee. So the appointer may appoint itself as trustee. The appointer really is the BEST position to be in. But generally the trust is largely under control by the appointer and trustee. So if you are the appointerand trustee its a pretty good bet in most cases you are in control. But as you say…[Read more]

"A trustee just manages the trust (investment decisions, regulation, etc) following within the guidelines of the trust, the appointor just appoints them. The assets are owned by the trust and the trust has beneficiaries.If your father was sole beneficiary then it could be argued that they are his assets. If it is seen that a trust has been setup…[Read more]

When drafting a will, would all lawyers include all of what you said they should by defult? The solicitors we are going to use to create it are professionals. Otherwise I will take your notes to the meeting when we organise a meeting between the three of us in order to draft the will.  What is testamentary capacity? Partial intentacy? I know t…[Read more]

Were in the process of creating binding financhial agrements for the superannuation funds. Also yes they need to be updated every three years and I will be keeping ontop of that. "Your dad can't give away his wifes share of the assets in his will only his share" My understanding is that if assets are held by a trust then they are owned by a…[Read more]

Terryw,May I be a beneficiary of more than one trust at any given time?Cheers

Terryw,"But it wouldn't count as child support and the child would only be able to get $416 pa trust free"You mean to say "Tax free" right?

Yes, but what if the farm is worth 2M and the office building is worth 100K? Then if you create a trust A for child A for the farm and trust B for child B for the office building then the assets are not really distributed evenly between the children! Is that what you meant or am I not understanding. (i,e one trust for each child and relevent property?).

Okay, well I think when my father writes the will I will be asking him to make me the executor. However, if down the track we decide to also create a trust of our own, (separate from my granparents), then may I also be named appointer to be in the event of my fathers death. I mean to say, could I be the executor of a will, a beneficiary and an…[Read more]

My next question, may the executor also be a beneficiary of the will?