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The super & estate planning Collection A concise collection of Super & Estate Planning materials
A Tax Institute Publication
taxinstitute.com.au
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Published in Australia in 2011 by The Tax Institute ABN 45008392372 Level 10, 175 Pitt Street, Sydney, NSW 2000 taxinstitute.com.au © The Tax Institute 2011 The Super & Estate Planning Collection ISBN: 978-0-9871124-8-4
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Important disclaimer
This publication is intended as an information source only. The comments and extracts from legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. All readers – whether purchasers of the book or otherwise – should seek advice from a professional adviser regarding the application of any of the comments in this publication to a particular fact scenario. Information in this book does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. The Tax Institute excludes all liability (including liability for negligence) in relation to your use of this publication. All readers must rely on their own professional advice.
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The papers in this Super & Estate Planning Collection are accurate as at the date stated on each specific paper.
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Contents The Practical Control and Taxation of Superannuation Death Benefits Sam McCullough, Peter Worrall Lawyers
The Opportunities and Traps for SMSF Investment Heather Gray, DLA Piper
Taxation of Trusts – Are We There Yet? Ken Schurgott, Schurgott Noolan Pty Ltd
SMSF’s Succession Issues Lyn Formica, McPherson Consulting Pty Ltd
Significant Trust Issues in Estate Planning Arlene Macdonald, Edmund Barton Chambers SA
Self Managed Super: Strategies & Investment Structures for Purchasing Business Real Property Peter Bobbin, Argyle Lawyers Pty Ltd
Restructuring Trusts to Companies: What You Need to Know Craig Cooper, RSM Bird Cameron
Estate & Succession Planning Bernie O’Sullivan, Maddocks
1 77 118 152 211
280 340 403
The Practical Control and Taxation of Superannuation Death Benefits Presented at the 26th NATIONAL CONVENTION March 2 2011 Written & presented by: Sam McCullough, Peter Worrall Lawyers
ABSTRACT This paper reviews the key concepts and issues relevant to the control and taxation of superannuation death benefits, using brief case studies to illustrate each trust, legal and taxation consideration for an adviser and client. The paper explains and reinforces relevant rules and planning options, with analysis of the underlying legal and tax foundations relevant generally. The paper explains when a person may qualify as a “financial dependant” of the member, then expands upon the issues of eligibility for payment and concessional tax treatment. The eligibility of grandchildren to be paid pensions from superannuation death benefits after age twenty five introduces the topic of how payments can be made from superannuation generally. The paper then looks at the particular issue of estate planning for adult children who have disabilities. T