Tidying Up Trusts in the Estate Plan - recorded half-day online conference

Hear from the experts at this online half day conference.

You can watch it on your computer or on your portable electronic device from anywhere.

Session 1: Bad Deeds: The Perils and Pitfalls of Older Trust Arrangements

Family trusts and testamentary trusts have been a well-used tool for asset protection and income management for many years. However, as a result of the impact of new legislation, case law and changing family or other circumstances, the instrument may not meet current needs and could expose the trust or beneficiaries to unwanted financial and other consequences. This practical session examines some of the problems in older trust deeds and will provide practical strategies for rectification, including:

• Why might the trust deed need variation? Identifying reasons for change
• Reviewing key clauses –death or incapacity of appointors and guardians, beneficiaries and trustees
• Power to vary - the deed and State legislation
• When to seek the assistance of the courts
• Common law restrictions on variation and how they might apply
• Changing a trustee - Corporations Law requirements
• Drafting a deed of variation - tips and traps
• ATO rulings and recent cases

Session 2: A Ticking Time Bomb: Options for Managing a Trust About to Vest

The issue of trust vesting has become particularly important in recent years, especially for those about to reach their vesting date with the associated obligations such as distribution of the assets. There may be a number of reasons to delay this date, including for financial and estate planning reasons. This session will look at the key considerations around trust vesting and the steps that can be taken to minimise or avoid potential liabilities, including:

• Auditing the trust deed and preparing for the future

• The concepts of perpetuity and vesting

• What happens on the vesting date?

• CGT and duty liabilities - how and when do they arise?

• Other reasons for delaying the vesting date

• Extending the vesting date under the terms of the trust deed

• Court applications for extension - relevant legislation and cases

• Rulings TR 2017/D10 and TR2018/6 - how the ATO will view trust vesting and date extensions

• The South Australia solution - availability and practicalities

• What to do when vesting is the only option

Session 3: A Matter of Trust: Protecting Special Needs Family Members in the Estate Plan

The biggest single worry of parents with a special needs’ child is how to protect their child after the parents have passed away. This session will look at the options for setting up appropriate structures to safeguard the interests of special needs children, with a focus on protective trusts and special disability trusts. It covers:

• Predicting the unpredictable – looking at the capacity and needs of the child into the future

• Assessing ongoing physical, accommodation, medical, financial, social and other support required
• Management of equality of distribution and sibling issues and heading off potential challenges to the estate
• Setting up a protective trust in the Will to meet the needs of the beneficiary:

  • Asset share and distributions including family business arrangements

  • Balancing reliance by the child on government benefits and financial consequences

  • Appropriate limitations and conditions in the trust deed

  • Trustee selection and sibling involvement

• The use of a special disability trust as an estate planning tool:

  • Eligibility criteria

  • Financial implications for the beneficiary and eligible family members

  • The model trust deed clauses and ensuring deed compliance

  • Assets and gifts

  • Tax treatment

  • What happens when an STD ends?