Forum Replies Created
What about insurance trusts? I mean a insurance trust may be nessasary in some situations in order to provide instructions on how a insurance benefit is to be divided between spouses? (i.e. on the trust deed)
http://www.civiclegal.com.au/Publications/OnlineGuides/BusinessSuccessionPlanning.aspx
Have a look on the bottom of this page.
Only reason I ask is that dad actually did just buy a life insurance policy.
Cheers
Also
Superannuation funds (X3) -Separate
Self managed super fund last will and testament with will directions specified on trust deed OR binding nominations which would need to be updated EVERY THREE YEARS.
The self managed super fund is a trust which you create specifically to manage your superannuation affairs. On here you can specify on the trust deed exactly how you want your superannuation benefits distributed in the event of your death (this testimony is equivalent to a binding nomination but does not have to be renewed every three years). This would require you to transfer all your superannuation benefits into a single fund which is held in a trust. You would make yourself appointer of that trust and then you may appoint yourself as trustee.
Also dad, could you please make the solicitor the executor of the will. (If not the solicitor then me)-
Focus on Testamentary capacity
Make sure signing of the will is witnessed properly-
At least two people to witness the will signings AND also for the binding nomination forms for superannuation if they are used.
Any more on testamentary capacity?
These are my notes so far-
The will
Get dad to consider setting up a testamentary trust in his will as there can be big tax advantages as well as asset protection advantages. For example the will can be worded so that there is an option to take property outright in their own names or have it go into a trust. For example, (Wife) may elect to have her share of the property taken outright while in her own name while Ishtvan may elect to have his share of the property taken and put into a trust in which he is named the appointer for.
List of Items which should be included in the will
XXX houses
XXX Houses
Item 1Furniture, fridge, pool table,
Office desks.
Cars-
Any remaining bank account cash
Tools and equipment in shed
"The will can be worded so that there is an option to take property outright or have it go into a trust"
For example, the wife may only want to have her share of the property taken out in her own name however I may want my share of the property put directly into a trust.
This would be an example of a future tax saving as it means down the track I dont have to pay CGT if I actually do want to transfer it into a trust from my own name.
Okay, will do.
Also my grandad is seeing a solicitor to find out who the appointers of the trust are and get it changed if nessasary.
Also I have to get dad to write a will for his personal property held in his own name as in the case of the new wife. This will be done properly as you explained to me in the other topics. This will be mentioned and addressed when we see the solicitor.
Also I have detailed notes to take along with me to make sure I dont miss anything.
.
Yes, I understood all that already except the SIS part. If I want to have the trust deed stipulate what happens then obviously you need to transfer the superannuation into a super trust fund such as a SMSF. We will be seeing a solicitor about all this as soon as I am able to get my father into see one. Obviously we will need to be taking option A or B. Currently the super is with three different commercial companies.
I am leaning towards option B as it would not need to be updated so frequently.
Also seeing as the trustee is bound by the trust deed then if there is no BDN if will have to follow the instructions on the trust deed. (as you say)
What is SIS dependant?
"A binding death benefit nomination does not necessarily lapse after three years for a SMSF"
Yes, thats what I meant to say, the death benefit nomination of a SMSF is a binding nomination. Also my understanding is that it does not expire and need to renewed every three years.
Therefore this is better then a standard supperannuation binding form which when completed lasts for three years before it needs to be renewed. The trust deed of the SMSF death benefit nomination would not need to be updated every three years to be valid.
Thats it…..
My main interest is for the purpose of creating a last will and testament which is equivalent to a binding nomination.
If you spend some money creating a SMSF then you are able to effectively create a set of death benefit instructions in the SMSF trust deed in your will which dont have to updated every three years as in the case of a standard binding nomination.That was my understanding of it all according to the youtube video on my first post….
Oh, I see, So the SMSF requires you to transfer all your money out of your commercial super funds into a single fund held by the SMSF trust which the trustee (yourself) manages.??
I suppose also as in any other trust upon creation you would make yourself appointer and then appoint yourself as trustee
Yes okay, thanks. I just saw something talking about buying property in a SMSF. A little confusing right now but okay. The main thing I want to gain and take away from this is that the instructions in a trust deed of a SMSF is equivalent to a binding nomination. The good thing is that the instructions on the trust deed will last forever. (not just three years)
Also as in my case the SMSF may include multiple super funds with various super companies….
Cheers
Okay, sorry that makes more sense now. So a SMSF is a separate trust you create in order to deal specifically with your supperannuation affairs. This would contain a trust deed which deals with the death benefit nomination in a way which lasts indefinetley and does not require a binding nomination completed.
So if you had three supperannation accounts you would transfer all these to a SMSF at which point they become managed by the trustee of the SMSF (Yourself)?
Also if you already have a family trust then that deals with other forms of wealth such as property and cash….Or can they become all one single trust?
So my understanding is that these are a form you may fill if you have a trust deed so that your superannuation death benefits WILL be paid in a certain way without discretion of a trustee from a supperannuation company. I suppose this would be attached to your trust deed or it would be worded into the trust deed. Also they last for many years. (i.e. not just three)
Correct?
Also here is an example of one of these forms I found on google
Basically buying negatively geared property in a trust is usually only going to be worthwile if the trust is already earning decent income on its own in order for you to offset property costs against and reduce the trusts tax liability. If your just starting out as a PAYE tax situation, its probably best if you buy properties in your own name and then transfer them to a trust at a later date.
(Assuming you have spouses as beneficaries to reduce tax income and that gain is worth the CGT or other transfer fees)I think we would probably have to make separate trusts eventually in that case. But can you create a new trust without paying significant capital gains tax and or other taxes…?
Also if you didnt want to sell your half of an asset how may you transfer half of an asset into a separate trust for the other person.
Ishtvan051 wrote:I think you would need to have an odd number of appointers (e.g. 3), for example what if one wants to fire a trustee and one wants to keep. How would you reach a resolution….
But then again if you had separate trustees for your half of the trust assets then there may be no need for dispute as they are separate.
I think you would need to have an odd number of appointers (e.g. 3), for example what if one wants to fire a trustee and one wants to keep. How would you reach a resolution….
Well my grandfather did mention company when he was explaining his understanding of the will. Perhaps there is three trustees…
He kept refering to it as "his" company. Also that when he goes my father becomes half of his company and my grandmother reamins the oher half….
Or perhaps your right it has some other role…
