Month: June 2016

Discretionary Family Trust

This is the most common type of trust. These family trusts are usually established to manage, protect and pass on family assets, from one generation to the next. Family assets may include (but is not limited to):

– shares

– personal property

– business

– real estate

The income and capital gains can be distributed to any family member that the trustee sees fit. This is called the trustee’s discretion, and is the reason why family trusts are popular from a tax point of view. The trustee can choose to distribute income to the family members who are on the lowest marginal rates of tax.

Family members include all members in your own family lineage, as well as your partner’s parents, their children, grandparents, brothers, sisters, nieces, nephews as well as their spouses.

 

Unit Trust

The second most common type of trust is the unit trust.

A unit trust is a specific type of trust that dividends the beneficial ownership of the trust property into units. It is most suitable for non-related parties, but even some families prefer this type of trust, as it clearly distinguishes ownership percentages.

It differs from a discretionary family trust in that the trust property in the unit trust is held absolutely for the unit holder only. The trustee does not have any discretion to distribute income or capital among unit holders according to their marginal tax rate. Distributions must be allocated in accordance to units held in trust.

This gives certainty to all investors, and protects one unit holder from the other.

 

Testamentary Trust

Usually taxpayers are not aware of existence of these type of trusts, until they get to the stage of preparing or putting together their will.

 

A testamentary trust is established according to instructions in a will. So it does not exist until the person making those provisions passes away.

 

Rather than the deceased person’s assets going directly to beneficiaries, the assets are held in trust on behalf of those beneficiaries. Funds are then distributed according to the deceased’s rules and conditions.

 

A testamentary trust can protect the assets a beneficiary may receive in the event of bankruptcy, business lawsuit, or relationship breakdown. Unlike discretionary family trusts, minors receive the adult tax-free threshold of $18,200, which means you can tax-effectively distribute trust income and capital gains among children, increasing the net income distribution to the family.

 

Special Disability Trust

Special disability trusts can be established to help family members and caregivers provide for the future care and accommodation needs of disabled or vulnerable family members. They can also attract social security means test concessions for the beneficiary and those family members establishing the Special Disability Trust.

 

Bloodline Trust

Bloodline trusts are designed to keep money and assets in the family. Bloodline Trusts are also commonly known as Lineal Descendants Discretionary Trust

 

They are designed to protect the inheritance of your children and their descendants – children and grandchildren – from seizure following future divorces or separations, creditor claims, and bankruptcy claims.

 

They can also be used to shield future generations from unnecessary capital gains taxes and stamp duty issues.

 

Make sure you understand your options, and what it is you are trying to achieve, before you set up your trust structure.

 

 

Discretionary Family Trust

This is the most common type of trust. These family trusts are usually established to manage, protect and pass on family assets, from one generation to the next. Family assets may include (but is not limited to):

– shares

– personal property

– business

– real estate

The income and capital gains can be distributed to any family member that the trustee sees fit. This is called the trustee’s discretion, and is the reason why family trusts are popular from a tax point of view. The trustee can choose to distribute income to the family members who are on the lowest marginal rates of tax.

Family members include all members in your own family lineage, as well as your partner’s parents, their children, grandparents, brothers, sisters, nieces, nephews as well as their spouses.

 

Unit Trust

The second most common type of trust is the unit trust.

A unit trust is a specific type of trust that dividends the beneficial ownership of the trust property into units. It is most suitable for non-related parties, but even some families prefer this type of trust, as it clearly distinguishes ownership percentages.

It differs from a discretionary family trust in that the trust property in the unit trust is held absolutely for the unit holder only. The trustee does not have any discretion to distribute income or capital among unit holders according to their marginal tax rate. Distributions must be allocated in accordance to units held in trust.

This gives certainty to all investors, and protects one unit holder from the other.

 

Testamentary Trust

Usually taxpayers are not aware of existence of these type of trusts, until they get to the stage of preparing or putting together their will.

 

A testamentary trust is established according to instructions in a will. So it does not exist until the person making those provisions passes away.

 

Rather than the deceased person’s assets going directly to beneficiaries, the assets are held in trust on behalf of those beneficiaries. Funds are then distributed according to the deceased’s rules and conditions.

 

A testamentary trust can protect the assets a beneficiary may receive in the event of bankruptcy, business lawsuit, or relationship breakdown. Unlike discretionary family trusts, minors receive the adult tax-free threshold of $18,200, which means you can tax-effectively distribute trust income and capital gains among children, increasing the net income distribution to the family.

 

Special Disability Trust

Special disability trusts can be established to help family members and caregivers provide for the future care and accommodation needs of disabled or vulnerable family members. They can also attract social security means test concessions for the beneficiary and those family members establishing the Special Disability Trust.

 

Bloodline Trust

Bloodline trusts are designed to keep money and assets in the family. Bloodline Trusts are also commonly known as Lineal Descendants Discretionary Trust

 

They are designed to protect the inheritance of your children and their descendants – children and grandchildren – from seizure following future divorces or separations, creditor claims, and bankruptcy claims.

 

They can also be used to shield future generations from unnecessary capital gains taxes and stamp duty issues.

 

Make sure you understand your options, and what it is you are trying to achieve, before you set up your trust structure.

 

 

Discretionary Family Trust

This is the most common type of trust. These family trusts are usually established to manage, protect and pass on family assets, from one generation to the next. Family assets may include (but is not limited to):

– shares

– personal property

– business

– real estate

The income and capital gains can be distributed to any family member that the trustee sees fit. This is called the trustee’s discretion, and is the reason why family trusts are popular from a tax point of view. The trustee can choose to distribute income to the family members who are on the lowest marginal rates of tax.

Family members include all members in your own family lineage, as well as your partner’s parents, their children, grandparents, brothers, sisters, nieces, nephews as well as their spouses.

 

Unit Trust

The second most common type of trust is the unit trust.

A unit trust is a specific type of trust that dividends the beneficial ownership of the trust property into units. It is most suitable for non-related parties, but even some families prefer this type of trust, as it clearly distinguishes ownership percentages.

It differs from a discretionary family trust in that the trust property in the unit trust is held absolutely for the unit holder only. The trustee does not have any discretion to distribute income or capital among unit holders according to their marginal tax rate. Distributions must be allocated in accordance to units held in trust.

This gives certainty to all investors, and protects one unit holder from the other.

 

Testamentary Trust

Usually taxpayers are not aware of existence of these type of trusts, until they get to the stage of preparing or putting together their will.

 

A testamentary trust is established according to instructions in a will. So it does not exist until the person making those provisions passes away.

 

Rather than the deceased person’s assets going directly to beneficiaries, the assets are held in trust on behalf of those beneficiaries. Funds are then distributed according to the deceased’s rules and conditions.

 

A testamentary trust can protect the assets a beneficiary may receive in the event of bankruptcy, business lawsuit, or relationship breakdown. Unlike discretionary family trusts, minors receive the adult tax-free threshold of $18,200, which means you can tax-effectively distribute trust income and capital gains among children, increasing the net income distribution to the family.

 

Special Disability Trust

Special disability trusts can be established to help family members and caregivers provide for the future care and accommodation needs of disabled or vulnerable family members. They can also attract social security means test concessions for the beneficiary and those family members establishing the Special Disability Trust.

 

Bloodline Trust

Bloodline trusts are designed to keep money and assets in the family. Bloodline Trusts are also commonly known as Lineal Descendants Discretionary Trust

 

They are designed to protect the inheritance of your children and their descendants – children and grandchildren – from seizure following future divorces or separations, creditor claims, and bankruptcy claims.

 

They can also be used to shield future generations from unnecessary capital gains taxes and stamp duty issues.

 

Make sure you understand your options, and what it is you are trying to achieve, before you set up your trust structure.

 

 

Discretionary Family Trust

This is the most common type of trust. These family trusts are usually established to manage, protect and pass on family assets, from one generation to the next. Family assets may include (but is not limited to):

– shares

– personal property

– business

– real estate

The income and capital gains can be distributed to any family member that the trustee sees fit. This is called the trustee’s discretion, and is the reason why family trusts are popular from a tax point of view. The trustee can choose to distribute income to the family members who are on the lowest marginal rates of tax.

Family members include all members in your own family lineage, as well as your partner’s parents, their children, grandparents, brothers, sisters, nieces, nephews as well as their spouses.

 

Unit Trust

The second most common type of trust is the unit trust.

A unit trust is a specific type of trust that dividends the beneficial ownership of the trust property into units. It is most suitable for non-related parties, but even some families prefer this type of trust, as it clearly distinguishes ownership percentages.

It differs from a discretionary family trust in that the trust property in the unit trust is held absolutely for the unit holder only. The trustee does not have any discretion to distribute income or capital among unit holders according to their marginal tax rate. Distributions must be allocated in accordance to units held in trust.

This gives certainty to all investors, and protects one unit holder from the other.

 

Testamentary Trust

Usually taxpayers are not aware of existence of these type of trusts, until they get to the stage of preparing or putting together their will.

 

A testamentary trust is established according to instructions in a will. So it does not exist until the person making those provisions passes away.

 

Rather than the deceased person’s assets going directly to beneficiaries, the assets are held in trust on behalf of those beneficiaries. Funds are then distributed according to the deceased’s rules and conditions.

 

A testamentary trust can protect the assets a beneficiary may receive in the event of bankruptcy, business lawsuit, or relationship breakdown. Unlike discretionary family trusts, minors receive the adult tax-free threshold of $18,200, which means you can tax-effectively distribute trust income and capital gains among children, increasing the net income distribution to the family.

 

Special Disability Trust

Special disability trusts can be established to help family members and caregivers provide for the future care and accommodation needs of disabled or vulnerable family members. They can also attract social security means test concessions for the beneficiary and those family members establishing the Special Disability Trust.

 

Bloodline Trust

Bloodline trusts are designed to keep money and assets in the family. Bloodline Trusts are also commonly known as Lineal Descendants Discretionary Trust

 

They are designed to protect the inheritance of your children and their descendants – children and grandchildren – from seizure following future divorces or separations, creditor claims, and bankruptcy claims.

 

They can also be used to shield future generations from unnecessary capital gains taxes and stamp duty issues.

 

Make sure you understand your options, and what it is you are trying to achieve, before you set up your trust structure.

 

 

Complaint 1: ” I never hear from my accountant”

This is the most common complaint that we hear. The truth is, your accountant is probably so busy, that they don’t have time to scratch their own backsides.

Events such as uncontrolled growth, understaffing, poor time management and even the culture of the practise could have an impact on this. Communicate this to your accountant, and see how they react. If things change, then give them a chance! Otherwise, time to find a new one. But always be fair – if they don’t realise you wanted the communication, chances are, they may not want to keep bothering you.

Complaint #2 – “My accountant is so old school”

Well, fair enough. We have not discovered the secret to anti- ageing yet, but it could be any time soon!!!

 

 

On a serious note, this may be because:

1. The accountant is not working on the cloud, not even aware of its existence, or refuse to adapt

2. They do not use email to communicate and still send things through Penny the Pigeon

3. They still charge an hourly rate

 

 

 

Complaint #3 – “I don’t like my accountant”

This can’t be helped – time to move on and find someone that shares your passion for your business. And donuts. Or coffee.

 

 

 

Complaint #4 – “I don’t think my accountant understands me/my business”

This is another common complaint. If you have given them a fair opportunity to get to know you, and they haven’t taken the time, then find someone who cares.

 

 

 

Complaint #5 – “I don’t think my accountant cares”

Same as 4. Give them a chance, then leave. Just like any other relationship in life, if they don’t care about you, then move on.

 

 

 

Complaint #6 – “My accounting fee was too high”

Now this one is tricky – your accounting fee could be high because you used a lot of their services. Make sure you work with someone that is upfront about their fees and charges, or allows payment plans.

 

 

 

Complaint #7 – “I never see the same accountant”

This is sometimes the case with accounting firms that have high staff turnover. This should ring alarm bells – why are the staff leaving??

The rotating staff is also common with larger firms as well.

 

 

 

Complaint # 8 – “I feel like a sausage on a factory line”

Hmmm. This must be a terrible feeling. Get off the factory line and find a proper accountant that takes the time to chat with you.

 

 

 

 

 

 

 

 

 

Complaint 1: ” I never hear from my accountant”

This is the most common complaint that we hear. The truth is, your accountant is probably so busy, that they don’t have time to scratch their own backsides.

Events such as uncontrolled growth, understaffing, poor time management and even the culture of the practise could have an impact on this. Communicate this to your accountant, and see how they react. If things change, then give them a chance! Otherwise, time to find a new one. But always be fair – if they don’t realise you wanted the communication, chances are, they may not want to keep bothering you.

Complaint #2 – “My accountant is so old school”

Well, fair enough. We have not discovered the secret to anti- ageing yet, but it could be any time soon!!!

 

 

On a serious note, this may be because:

1. The accountant is not working on the cloud, not even aware of its existence, or refuse to adapt

2. They do not use email to communicate and still send things through Penny the Pigeon

3. They still charge an hourly rate

 

 

 

Complaint #3 – “I don’t like my accountant”

This can’t be helped – time to move on and find someone that shares your passion for your business. And donuts. Or coffee.

 

 

 

Complaint #4 – “I don’t think my accountant understands me/my business”

This is another common complaint. If you have given them a fair opportunity to get to know you, and they haven’t taken the time, then find someone who cares.

 

 

 

Complaint #5 – “I don’t think my accountant cares”

Same as 4. Give them a chance, then leave. Just like any other relationship in life, if they don’t care about you, then move on.

 

 

 

Complaint #6 – “My accounting fee was too high”

Now this one is tricky – your accounting fee could be high because you used a lot of their services. Make sure you work with someone that is upfront about their fees and charges, or allows payment plans.

 

 

 

Complaint #7 – “I never see the same accountant”

This is sometimes the case with accounting firms that have high staff turnover. This should ring alarm bells – why are the staff leaving??

The rotating staff is also common with larger firms as well.

 

 

 

Complaint # 8 – “I feel like a sausage on a factory line”

Hmmm. This must be a terrible feeling. Get off the factory line and find a proper accountant that takes the time to chat with you.

 

 

 

 

 

 

 

 

 

Complaint 1: ” I never hear from my accountant”

This is the most common complaint that we hear. The truth is, your accountant is probably so busy, that they don’t have time to scratch their own backsides.

Events such as uncontrolled growth, understaffing, poor time management and even the culture of the practise could have an impact on this. Communicate this to your accountant, and see how they react. If things change, then give them a chance! Otherwise, time to find a new one. But always be fair – if they don’t realise you wanted the communication, chances are, they may not want to keep bothering you.

Complaint #2 – “My accountant is so old school”

Well, fair enough. We have not discovered the secret to anti- ageing yet, but it could be any time soon!!!

 

 

On a serious note, this may be because:

1. The accountant is not working on the cloud, not even aware of its existence, or refuse to adapt

2. They do not use email to communicate and still send things through Penny the Pigeon

3. They still charge an hourly rate

 

 

 

Complaint #3 – “I don’t like my accountant”

This can’t be helped – time to move on and find someone that shares your passion for your business. And donuts. Or coffee.

 

 

 

Complaint #4 – “I don’t think my accountant understands me/my business”

This is another common complaint. If you have given them a fair opportunity to get to know you, and they haven’t taken the time, then find someone who cares.

 

 

 

Complaint #5 – “I don’t think my accountant cares”

Same as 4. Give them a chance, then leave. Just like any other relationship in life, if they don’t care about you, then move on.

 

 

 

Complaint #6 – “My accounting fee was too high”

Now this one is tricky – your accounting fee could be high because you used a lot of their services. Make sure you work with someone that is upfront about their fees and charges, or allows payment plans.

 

 

 

Complaint #7 – “I never see the same accountant”

This is sometimes the case with accounting firms that have high staff turnover. This should ring alarm bells – why are the staff leaving??

The rotating staff is also common with larger firms as well.

 

 

 

Complaint # 8 – “I feel like a sausage on a factory line”

Hmmm. This must be a terrible feeling. Get off the factory line and find a proper accountant that takes the time to chat with you.

 

 

 

 

 

 

 

 

 

Complaint 1: ” I never hear from my accountant”

This is the most common complaint that we hear. The truth is, your accountant is probably so busy, that they don’t have time to scratch their own backsides.

Events such as uncontrolled growth, understaffing, poor time management and even the culture of the practise could have an impact on this. Communicate this to your accountant, and see how they react. If things change, then give them a chance! Otherwise, time to find a new one. But always be fair – if they don’t realise you wanted the communication, chances are, they may not want to keep bothering you.

Complaint #2 – “My accountant is so old school”

Well, fair enough. We have not discovered the secret to anti- ageing yet, but it could be any time soon!!!

 

 

On a serious note, this may be because:

1. The accountant is not working on the cloud, not even aware of its existence, or refuse to adapt

2. They do not use email to communicate and still send things through Penny the Pigeon

3. They still charge an hourly rate

 

 

 

Complaint #3 – “I don’t like my accountant”

This can’t be helped – time to move on and find someone that shares your passion for your business. And donuts. Or coffee.

 

 

 

Complaint #4 – “I don’t think my accountant understands me/my business”

This is another common complaint. If you have given them a fair opportunity to get to know you, and they haven’t taken the time, then find someone who cares.

 

 

 

Complaint #5 – “I don’t think my accountant cares”

Same as 4. Give them a chance, then leave. Just like any other relationship in life, if they don’t care about you, then move on.

 

 

 

Complaint #6 – “My accounting fee was too high”

Now this one is tricky – your accounting fee could be high because you used a lot of their services. Make sure you work with someone that is upfront about their fees and charges, or allows payment plans.

 

 

 

Complaint #7 – “I never see the same accountant”

This is sometimes the case with accounting firms that have high staff turnover. This should ring alarm bells – why are the staff leaving??

The rotating staff is also common with larger firms as well.

 

 

 

Complaint # 8 – “I feel like a sausage on a factory line”

Hmmm. This must be a terrible feeling. Get off the factory line and find a proper accountant that takes the time to chat with you.

 

 

 

 

 

 

 

 

 

Complaint 1: ” I never hear from my accountant”

This is the most common complaint that we hear. The truth is, your accountant is probably so busy, that they don’t have time to scratch their own backsides.

Events such as uncontrolled growth, understaffing, poor time management and even the culture of the practise could have an impact on this. Communicate this to your accountant, and see how they react. If things change, then give them a chance! Otherwise, time to find a new one. But always be fair – if they don’t realise you wanted the communication, chances are, they may not want to keep bothering you.

Complaint #2 – “My accountant is so old school”

Well, fair enough. We have not discovered the secret to anti- ageing yet, but it could be any time soon!!!

 

 

On a serious note, this may be because:

1. The accountant is not working on the cloud, not even aware of its existence, or refuse to adapt

2. They do not use email to communicate and still send things through Penny the Pigeon

3. They still charge an hourly rate

 

 

 

Complaint #3 – “I don’t like my accountant”

This can’t be helped – time to move on and find someone that shares your passion for your business. And donuts. Or coffee.

 

 

 

Complaint #4 – “I don’t think my accountant understands me/my business”

This is another common complaint. If you have given them a fair opportunity to get to know you, and they haven’t taken the time, then find someone who cares.

 

 

 

Complaint #5 – “I don’t think my accountant cares”

Same as 4. Give them a chance, then leave. Just like any other relationship in life, if they don’t care about you, then move on.

 

 

 

Complaint #6 – “My accounting fee was too high”

Now this one is tricky – your accounting fee could be high because you used a lot of their services. Make sure you work with someone that is upfront about their fees and charges, or allows payment plans.

 

 

 

Complaint #7 – “I never see the same accountant”

This is sometimes the case with accounting firms that have high staff turnover. This should ring alarm bells – why are the staff leaving??

The rotating staff is also common with larger firms as well.

 

 

 

Complaint # 8 – “I feel like a sausage on a factory line”

Hmmm. This must be a terrible feeling. Get off the factory line and find a proper accountant that takes the time to chat with you.

 

 

 

 

 

 

 

 

 

See attached file for all you need to know for the 2016 Tax Return.