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Active Retirees : Active Retirees Aug-Sept 2012
of the trust is extended beyond the life of its members,” says John Randle, a chartered accountant and founder of Randle Advisory. Family and testamentary trusts can have tax benefits, but these do have ongoing costs as well as initial set-up costs. A will is the best way to formalise how assets should be apportioned between beneficiaries. There is generally no ideal way to split assets; this often comes down to personal decision. Taxes and inheritance Part of the estate planning process should be transferring as many assets as possible into your super fund. You can make a $150,000 non-concessional contribution to your super fund each year. If you have a self-managed super fund (SMSF), appoint a corporate trustee. If you are using a SMSF, capital gains tax implications can be a little more complicated than with a traditional super fund. “When the last member of the fund dies it will revert to accumulation mode,” Randle explains. “If a large amount of capital gains have built up there could be a hefty tax bill.” “Many people also now choose to use their super fund as a family savings account, for instance choosing to place funds for grandchildren’s school fees in the tax-friendly environment of the fund,” he says. Consider the tax ramifications of passing on pre-1985 and post-1985 assets, as well as stamp duty. There is no capital gains tax payable on disposal of assets acquired before 1985, but capital gains tax may be payable on assets acquired after 1985 when they are sold. Stamp duty laws vary from state to state. For instance if you transfer an investment such as a managed fund in your own name, where the manager is based in NSW, into a SMSF in specie also in NSW, stamp duty is payable. But in Victoria under the same » Active RetireesTM | 31 $500 Strut your stuff in Monolo Blahnik shoes. $3000 Carry all your precious possessions in a Burberry handbag. $16,000 Spend a month cruising between Bali and Sydney. $100,000 Purchase your very own Motorhome so you’re always ready to go. Consider the tax ramifications of passing on pre and post-1985 assets, as well as stamp duty. Cover story
Active Retirees June-July 2012
Active Retirees Oct-Nov 2012