With 1 in 3 first marriages and 1 in 2 second marriages ending in divorce you just cannot afford to overlook your estate planning. Divorce is not easy and it often forces you to invest significant amounts of time, money and stress.
This is effectively any type of written statement regarding a person’s wishes for their future medical or healthcare treatment. Additionally it may formally appoint a person (decision-maker) who can act or speak on your behalf should you be unable to do so yourself due to illness or injury.
You want to prepare a will using a will kit. Does it matter? It’ll work, right? Why pay for one to be professionally prepared? My assets and structure is simple. In fact, maybe I can even do it while watching TV! The truth is that will kit or home-made wills often create problems. Anecdotal […]
They say that two things in life are inevitable – death and taxes. This doesn’t mean that the two have to happen at the same time. Generally where there is a change of ownership in small business, a CGT event is deemed to have occurred which may result in a capital loss or taxable gain. When a person dies, their assets are transferred to their legal personal representative (LPR) or are acquired by a surviving joint tenant, if one exists, and as such the Capital Gains Tax rules apply.
Under capital gains tax laws, if your business has continuously owned an active asset (i.e. business asset) for 15 years, you’re aged 55 or over and are retiring or permanently incapacitated, you may be able to sell the asset including the goodwill and not pay Capital Gains Tax. There are a number of tests to satisfy, but if satisfied then it is quite possible that any capital gain would be tax free.
Good tax planning should involve the inclusion of a testamentary trust as part of the estate plan. There are some little known tax concessions which executors should be aware of when it comes to these trusts and your principle place of residence which I have explained below.