Mastering the Taxation of Trusts – a recorded lunchtime online conference

Duration: 2.5 Hours

Hear from the experts at this online conference. You can watch it on your computer or on your portable electronic device from anywhere.

The conference will be based on our highly successful video webinar technology: there'll be a chairperson and presentations.

One registration can be shared by colleagues within the same firm utilising the same login.

THE PROGRAM

Session 1: Family Trust Elections – Are you in the Family or Out?

Many practitioners and clients have a fundamental misunderstanding of the rules and procedures with respect to making a family trust election in a family trust. This session seeks to clarify the requirements and tax consequences of making a family trust election. The following areas will be discussed:

• Why make a family trust election?
• Practically applying the family control test
• Who is in my family group?
• Tips on selecting the right test individual
• The impact of death and divorce on the family group
• Structuring issues and family trust elections (e.g. impact on corporate beneficiaries)
• Do I need a family trust election or interposed entity election?
• Revoking family trust and interposed entity elections
• IEEs and companies owned by trusts: you can never sell the company
• Circular trust distributions and the impact of the amendments in Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Act 2019

Session 2: Deceased Estates and Testamentary Trusts: Making Sure Income is Excepted Trust Income

Advisers are often called upon to assist executors of deceased estates or trustees of testamentary trusts with the tax affairs of the estate or trust. This session focuses on developments in this area, including the recent passing of Treasury Laws Amendment (2019 Measures No. 3) Bill 2019:

• Testamentary trusts and distributions to minor beneficiaries – unpacking the recent reforms
• Disclosure of protected information of a deceased taxpayer - CRP 2019/D1
• Draft Practical Compliance Guideline PCG 2018/D6 – Extension of 2 year period to dispose of inherited main residence
• Income tax liability of the LPR of a deceased person – PCG 2018/4
• Special disability trusts:
  • advantages and disadvantages
  • requirements
• De facto testamentary trusts:
  • advantages and disadvantages
  • requirements

Session 3: Section 100A and Distributions to Adult Children: The Commissioner Strikes

Discretionary trusts are the vehicle of choice for many clients, both for the purposes of holding assets and distributing income to beneficiaries. However, the release of the Commissioner’s draft ruling on reimbursement agreements has highlighted discretionary trusts are well and truly on the ATO’s radar. This session examines the practical application of section 100A of the ITAA 1936 in light of the ATO Draft ruling, with a focus on the following:

• What is a reimbursement agreement?
• What is an “ordinary family or commercial dealing”?
• Detailed analysis of the examples in the draft ruling
• Implications for discretionary trusts which “distribute” to adult children beneficiaries
• Implications for UPE and unitisation arrangements