Can your mistress challenge your Will

  The songwriter Richard Clapton, in 1975, warned: Girls on the avenue, they’re trying to get you in, Strolling by with their rosebud smiles. Sadly, Mr Sha didn’t heed such advice. While living with his wife, in Melbourne, Mr Sha engaged the services...

SMSF member overseas or of unsound mind? Fail Central Management & Control? Lose nearly half of your superanuation.

POAs and SMSFs To operate a complying Australian Self-Managed Superannuation Fund, you must usually: 1. live in Australia; and 2. be of sound mind. 1. Leave Australia: Your Self-Managed Superannuation Fund must satisfy several residency tests. One of those tests is...

Are life estates in Wills tax-friendly? What about Rights to Reside?

‘Life Estates’ do not work. Life estates in Wills are bad for tax. A ‘Right to reside’ is no better. A Life Estate (including under a Will) is an asset with two owners: Life Tenant – this person has the exclusive right to live and make a...

How to Build a Div 7A when the borrower is a Family Trust

  Need a Division 7A when the Family Trust lends money to a bucket company? You distribute Family Trust income to your children and spouse. As much as you can. But you run out of family members on a low marginal tax rates. The Family Trust then distributes the...

Can a beneficiary disclaim or renounce their entitlement to Family Trust income?

Can a beneficiary disclaim or renounce their family trust entitlement? Each financial year, your Family Trust gets an income. It may be from passively renting out property. It may be from operating your business. Someone has to pay tax on that income. Every year, you...

Added risks if Financial Planners operate out of a company? Consider ASIC v Cassimatis (Storm Financial)

Financial Planners operate out of a company. But is it wise? Directors make mistakes. ASIC punishes them. Fair enough. However, the court goes further when Financial Planners operate out of a company structure. Because Storm Financial held an Australian Financial...

Can you call your boss a ‘pig’ on Facebook? Unfair dismissal?

Stephen Campbell v Qube Ports [2017] FWC 1211 Stephen Campbell is a wharfie. His job is driving a big crane. He called his boss a ‘pig’ on Facebook. He also damaged a ship. It was not enough to sack him. He claimed unfair dismissal. According to the Fair Work...

CGT on dead wife’s wedding ring. Specific gifts in Wills are bad. Equalisation clauses do not work.

  Capital Gains Tax on dead people’s jewellery – CGT death duty on a wedding ring Sometimes people put a Specific Gift in their Will. For example, ‘my wedding ring to my daughter’. The result? CGT death duty on that wedding ring. At death, your Will...