Recorded Webinar: The Death Knell for Trust Splitting? The ATO Finally Releases its Views

In TD 2018/D3, the ATO has recently released its position on trust splitting – and its future certainly looks bleak. With the changes slated to be retrospective, it’s essential that you understand them fully, as they will affect clients who have already done trust splits, as well as those who want to divide interests in the future. This webinar closely examines TD 2018/D3 and its implications for advisers. It covers:

• The ATO’s position explained – the key elements:
  • separate trustees over separate assets
  • separate classes of beneficiaries to benefit from the classes of assets
  • rights of indemnity segregated
  • separate appointors
• Why the ATO believes a trust split triggers CGT event E1
• Is TD 2018/D3 in line with case law?
• Practical effect – what assets are disposed of and how are gains calculated under CGT event E1?
• Status of private rulings previously published by the ATO on trust splitting
• Advising clients with existing trust splits:
  • are they on all fours with the determination?
  • if not will the determination continue to apply?
• What to do in the future when clients want to separate interests
  • trust splits with different characteristics – eg no indemnity segregation – joint appointor control etc
  • contractual arrangements – risk of fettering the trustee’s discretion etc
  • use of rollovers and concessions