Succession & Estate Planners Australia in Toowong | Insurance Agent

Succession & Estate Planners Australia

Locality: Toowong

Phone: +61 7 3726 0091

Address: 14/10 Benson St 4066 Toowong, QLD, Australia

Website: http://www.seplanners.com.au

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24.01.2022 From 1 July 2017, the following changes to the tax and regulatory treatment of superannuation death benefits went into effect: Transfer balance cap: Death benefit income streams now count towards the beneficiarys (spouse only) transfer balance cap ($1.6 million in 2017/18); A modified transfer balance cap applies to death benefit income streams paid to children; The prescribed period has been removed;...Continue reading

24.01.2022 A couple of ASICs findings into the Direct Insurance market:- ASICs review of direct life insurance sales has found that sales practices and product design are leading to poor consumer outcomes. According to the regulator, consumers struggle with the direct life insurance sales experience and the complexity of the products, while their understanding of key features is often poor. The situation is further compounded by some insurance providers engaging in pressure selling te...Continue reading

23.01.2022 https://www.youtube.com/watch?v=bHH7QLyN_A4&feature=youtu.be

22.01.2022 Have you visited our new website yet? #controlyourdestiny

21.01.2022 Mary & En Rui getting 7,500 points each for keeping healthy. Now looking forward to their AIA Vitality rewards

20.01.2022 The human spirit & drive never ceases to amaze me. Even though Marty Mosch has been thrown lifes ultimate health challenge, cancer isnt stopping him & his wife Tanya from pursuing their dreams. This jerky (their own creation) has recently been awarded No. 1 in Qld by the Australian Meat Industry Council. Details are on their website www.chsjerjy.com.au Keep fighting guys

19.01.2022 Some would have us believe that there are no death taxes in Australia, but there are, & they are hidden, & whilst we continue to remain complacent the ATO will continue to amass hundreds of millions of dollars every year from these unnecessary taxes. So how can you tell if your family will be paying these hidden death taxes? Its really simple take a look at your most recent superannuation statement & you will notice that it includes your member balance, perhaps some in...Continue reading

19.01.2022 What do you say when you are looking into the eyes of another human being who is about to die? Let me share a recent story with you: A Brisbane man, still relatively young, had come to me for help after a client of mine had referred me to him. He informed me that he would be dead in less than 6 months from oesophageal cancer. Despondently he told me that he would never see his young children grow up, or graduate, or get married, yet he felt guilty for spending too much time...Continue reading

19.01.2022 Attention all Qantas Pilots: https://www.smh.com.au//former-qantas-pilots-lose-close-to

17.01.2022 Another successful claim, another satisfied client. Well done Celeste....you are amazing! This, by the way, was another pro-bono case accepted & successfully completed by our incredible team. You see Kelly ODwyer, there are some good guys in this industry as well

16.01.2022 Major blunder by large Financial Institution rectified by Adviser just in time for recently widowed mum. Having spent almost 30 years in this industry, it never ceases to amaze me just how careless some of our financial institutions are, but more importantly, just how lucky some our clients are to have planners who actually give a damn. Last year a close colleague of mine called me several times over the period of a few weeks absolutely exasperated at the ineptitude of one of...Continue reading

16.01.2022 Option 4 with your Life Insurance beneficiary structuring: Combining options 1, 2 & 3. This is often the preferred strategy for most of our clients as it allows us to fine-tune the beneficiary allocations to ensure the optimum outcome. Particularly with the new Transfer Balance Cap rules which came into regulation as at 1st July 2018, precise calculations can maximise income, maximise the remaining spouses retirement funding, minimise tax & protect assets for loved ones.... Advantages: (1) Where a Testamentary Trust will has been established, those investment assets will be protected and income from those assets can be distributed to beneficiaries (including minor children/grandchildren of the deceased) in a tax-effective manner. In certain circumstances this can be the ideal vehicle to provide a widowed spouses income, as the initial capital will not be counted towards that individuals transfer balance cap; (2) The remaining spouse may be able to contribute up to $300,000 into his/her own superannuation fund, using the non-concessional bring-forward provision, depending on the provisions of any Testamentary Trust deed, their current member balance and whether he/she has utilised this option in the previous years; (3) Provides funds to extinguish debt, pay for final expenses & to cover any other ancillary or unexpected costs; (4) Death benefit pension income received by financial dependants (including minor children of the deceased) is taxed at adult marginal rates; (5) The right combination ensures full asset protection, maximum income, minimum tax all without effecting any of the beneficiarys transfer balance caps. Disadvantages: (1) If the beneficiary allocation is not reviewed regularly (every 1-2 years) then the optimum outcome may not be achieved particularly if circumstances have changed.

15.01.2022 Follow on for my recent post on 1st July 2017 changes: Pensions commenced before 1 July 2017 For death benefit income streams commenced before 1 July 2017, the amount of the transfer balance credit is the value of the income stream at 30 June 2017. ... Commencing on or after 1 July 2017 For death benefit income streams commencing on or after 1 July 2017, the amount of the transfer balance credit is the commencement value when it starts to be paid to the beneficiary. This amount may include investment earnings accrued between the time the person died and when the death benefit income stream became payable. Proceeds from a life insurance policy paid during this period would also be included. The credit to the transfer balance cap occurs on the date the death benefit income stream commences. Removal of prescribed period Under previous rules, the commutation of a death benefit income stream was treated in one of two ways, depending on the timing of the commutation: 1) If commuted within the prescribed period - treated as a death benefit for tax purposes and taxed accordingly. It could only be commuted and cashed as a lump sum. 2) If commuted outside of the prescribed period - treated as a superannuation member benefit. This allowed the death benefit income stream to be commuted and rolled back to accumulation phase (the ability to rollover is only available to a spouse). It also meant that any commutations were taxed as member benefits, i.e. subject to tax if the recipient was under 60 years of age. From 1 July 2017, the prescribed period has been removed. Commutations from death benefit income streams will be treated as superannuation death benefits, regardless of when they are commuted. Under the new rules: Commutations will be taxed as death benefits for tax purposes. In this case, lump sum commutations will be tax free, as dependants who are eligible to receive death benefit income streams also fall within the definition of dependants under tax law. Death benefit income streams cannot be commuted and rolled to accumulation. Death benefit income streams can only be rolled to a new death benefit income stream or cashed as a lump sum. This change applies to both existing and new death benefit income streams commenced on or after 1 July 2017.

14.01.2022 Follow on from my recent post on July 2017 Superannuation changes & the effects of Death Benefit Pesnions. Child pensions and the transfer balance cap Where a child receives a death benefit income stream, a modified transfer balance cap applies so that the child, to some extent, inherits the deceaseds transfer balance cap. The modified transfer balance cap is generally set by reference to the childs portion of the deceased parents retirement phase income stream(s). ... In the event that a death benefit income stream exceeds the childs transfer balance cap, any excess amount must be cashed out to the child as a lump sum death benefit payment. The child is not able to retain this amount in the superannuation system. Once the child cashes out the death benefit income stream at age 25, or when the capital of the income stream is exhausted, the childs transfer balance account ceases. This ensures the childs ability to commence income streams in retirement is not impacted by the death benefit income streams received as a child. Who can receive a child death benefit income stream? A death benefit income stream can be paid to a child of a deceased parent where the child: is under age 18; or is under age 25 and financially dependent; or has a permanent disability. Child death benefit income streams generally have to be commuted where the child reaches age 25, unless the child has a permanent disability. The amount of transfer balance cap applicable to a child death benefit income stream is referred to as a transfer balance cap increment.

14.01.2022 Follow on from my posts on the 2017 Superannuation & Death Benefit changes: Rollover of death benefits Under previous rules, only death benefit income streams paid to a spouse could be rolled over outside of the prescribed period. Death benefit income streams paid to other dependants (ie minor child, adult child under 25 and a financial dependant, or dependant in an interdependent relationship) were unable to be rolled over. ... Under the new rules, all dependants eligible to receive a death benefit income stream that commences on or after 1 July 2017 can: Rollover death benefits to a different superannuation fund to commence a death benefit income stream; Rollover existing death benefit income streams to another super fund to commence a new death benefit income stream. As death benefit income streams commenced on or after 1 July 2017 retain their character regardless of how many times they are rolled over, beneficiaries will continue to receive the 15% tax offset (if eligible) when they rollover an income stream. This is an improvement on the previous rules where spouses who rolled over a death benefit income stream lost the 15% tax offset.

13.01.2022 Hard hitting article from Synchron Aust Chair Michael Harrison about the value of the Direct Channel life insurance. Recommended reading.

11.01.2022 Superannuation Death Benefit Pensions who can receive one? A superannuation death benefit generally refers to a payment from a superannuation fund after the death of a member. The payment can be in the form of a lump sum or pension, however a pension may only be paid to financial dependants of the deceased member. A lump sum death benefit may be paid as either money (i.e. cash) or, where permitted under the funds trust deed, as an in-specie payment (i.e. payment with a fun...Continue reading

09.01.2022 Cholesterol check for AIA Vitality. I hope you didnt have a bacon & cheese burger for breakfast Charlie

08.01.2022 Some terrific news - YOU ARE INVITED TO OUR FIRST EVENT! If you have an elderly parent and are starting to consider options for their care, dont miss this valuable event.https://mailchi.mp/a6b6f0553f94/elnwbe8w9e-6367859

08.01.2022 Really looking forward to chatting with Kieran Hoare from Merthyr Law on 7th November: https://www.linkedin.com//kieran-hoare_smsf-superannuatio/

07.01.2022 Many of us in Australia have life insurance, but not many of us give any consideration into how the proceeds of our policies should be paid. We do have a few options however, so over the next few days we will investigate some of the advantages & disadvantages of each of those options: Term Life Insurance pays a lump sum of money if you die or become terminally ill. Many clients choose to hold their term life insurance through superannuation as this provides a very economical ...way to pay the premiums, and allows the insured to take advantage of extremely effective estate planning tools. When an individual passes away it is normally an emotional and highly stressful time for their family. Pre-determining how loved ones are to receive your superannuation/life insurance death benefits can have significant tax implications long term. There are several options available: (1) Pay the benefit (member balance + insurance proceeds) as a lump sum into your spouses and/or childrens personal names; (2) Pay the benefit as a lump sum into your estate; (3) Pay death benefit pension to your financial dependants; (4) A combination of any/all of the above. Option one: Paying the benefit as a lump sum to a spouse and/or child. Advantages: (1) Provides funds to extinguish debt, pay for final expenses & to cover any other ancillary or unexpected costs; (2) Once debts have been cleared, excess funds can be invested to replace the deceaseds previous income; (3) The spouse may be able to contribute up to $300,000 into his/her own superannuation fund, using the non-concessional bring-forward provision, depending on their current member balance and whether he/she has utilised this option in the previous years. Disadvantages: (1) Once funds are received in an individuals name, those funds are then exposed to future relationship breakdowns, creditors, bankruptcy trustees etc.; (2) Any earnings from invested funds will be taxed at that individuals marginal tax rate and will often tip that individual into the next tax bracket; (3) The remaining spouse will have lost the opportunity to create a vehicle that not only offers complete asset protection, but also provides tax-effective income to the family (note: A post death Superannuation Proceeds Trust could still be established, however minor beneficiaries must be the ultimate capital beneficiaries in this situation meaning the assets of the trust must ultimately vest in them. This may not be appropriate for the familys circumstances as it reduces the asset protection afforded by Testamentary Trusts for example. Also, the concessional rates of tax will generally not be available to grandchildren); (4) If the child who receives the payment is not a SIS dependant then he/she will be required to pay tax on the amount received of up to 30%. Tomorrow we will investigate option 2.

07.01.2022 Charlie doing his heart rate monitoring for AIAs Vitality program. A great initiative

06.01.2022 How many of us here in Australia love paying taxes? I am yet to meet one person. How many Australians are aware of the different tax consequences within Life Insurance policies? Unfortunately not too many. Not knowing the advantages and disadvantages of the different types of policy ownership and the importance of structuring your beneficiaries correctly can lead not only to unnecessary taxes for the beneficiaries, but also needless exposure of those insurance proceeds....Continue reading

06.01.2022 Option 3 with your Life Insurance beneficiary structuring: Paying Death Benefit Pensions to your financial dependants. Advantages:...Continue reading

05.01.2022 If you are in a new relationship after you and/or your new partner have been through a divorce, & you think your assets are protected then you had better do a double-check!!! https://www.news.com.au///b42ed29c3f6d18cf66dfb2e9e61ed317

05.01.2022 Australias only Superannuation & Life Insurance Optimiser. www.theallocator.com.au

05.01.2022 Option 2 with your Life Insurance beneficiary structuring: Paying the benefit as a lump sum to your estate. Advantages:... (1) Distribution of the funds will be determined by the deceaseds will; (2) Provides funds to extinguish debt, pay for final expenses & to cover any other ancillary or unexpected costs; (3) Once debts have been cleared, excess funds can be invested to replace the deceaseds previous income and, where a Testamentary Trust will has been established, those investment assets will be protected and income from those assets can be distributed to beneficiaries (including minor children/grandchildren of the deceased) in a tax-effective manner; (4) The remaining spouse may be able to contribute up to $300,000 into his/her own superannuation fund, using the non-concessional bring-forward provision, depending on the provisions of any Testamentary Trust deed, their current member balance and whether he/she has utilised this option in the previous years. Disadvantages: (1) Obtaining a Grant of Probate (the process of proving and registering in the Supreme Court the last Will of a deceased person) or Letters of Administration generally takes an additional 6-8 weeks from start to finish; (2) Where a Testamentary Trust has not been established and funds are received in an individuals name, then once again those funds will be exposed to future relationship breakdowns, creditors, bankruptcy trustees etc.; (3) Where a Testamentary Trust has not been established, earnings from invested funds will be taxed at the recipients marginal tax rate and will often tip that individual into the next tax bracket; (4) If there is no valid will, the estate will be distributed in accordance with the intestacy rules within the deceaseds state. Broadly speaking, a statutory order may result in the division of the estate between eligible relatives of the deceased which may include spouses, previous spouses, children and other relatives; (5) Where the deceased was in a state of, or facing bankruptcy, the bankruptcy trustee can use the proceeds to repay money owed to creditors; (6) Any child who receives a payment from the estate, and who is not a SIS dependant, will be required to pay tax on the amount received of up to 30%. Stay tuned for Option 3 tomorrow.

02.01.2022 We want to let you know that you are not alone - if you are a financial adviser with many years experience we dont want the industry to lose your skills and knowledge. https://mailchi.mp/f317bc472fa6/elnwbe8w9e-6398784

01.01.2022 ASIC finally clamping down on the high-pressure selling tactics by direct insurers. Given that 60% of consumers who purchase insurance via direct insurers cancel their policies within 3 years, plus the fact that those policyholders who attempt to make a claim are mortified when they discover that it is at claim-time when these companies actually do their underwriting (good luck trying to get money out of this lot if you have failed to disclose any information), then this action will only have a positive outcome for Australian consumers: http://riskinfo.com.au//asic-raise-concerns-over-lapses-/

01.01.2022 https://seplanners.com.au/

01.01.2022 These grubby organisations really do need to be exposed & the transgressors banned for life: https://www.news.com.au///75c1de83cceaf91d0f6658adba0f3112

01.01.2022 Buy Sell Agreements - Be careful of this hidden trap A Buy Sell agreement is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies, is forced to leave the business due to incapacitation or default, or chooses to leave the business. Lets address specifically the issue of default. Four years ago I was a partner in a 3-partner practice when, to our horror, we discovered that one of our partners had been less than honest wi...th many of our clients (due to the fact that this ex-partners criminal hearing is currently taking place, I, unfortunately, cannot divulge exact details of his actions). My first call, upon discovering his activities, was to my solicitor & I asked him to guide us through the process of the default, or breach. In accordance with our agreement, a breach notice was drafted, signed & issued to the ex-partner within the requisite period of time, followed by an offer for his share of the practice. Our ex-partner immediately sought legal advice & communicated to us, via his solicitor, that he rejected our offer & our assertions of any breach. The business was then formally valued by an independent valuer &, once again, a formal offer was made to purchase his share. The offer was again rejected. The next step to remove this partner (so that we could continue to trade) was arbitration, and this is where the wheels fell off. We nominated our preferred Arbitrator & our ex-partner rejected that nomination. We then approached the Qld Law Society to nominate an Arbitrator, however, before arbitration could occur, both sides were required to indemnify the Law Society. We agreed to do this but our ex-partner refused. Unfortunately our Buy Sell agreement did not address this situation &, in hindsight, omitting the Arbitration clause altogether, & agreeing to simply go straight to court, would have resulted in a far less expensive (& less stressful) outcome. Please connect with me or phone me if you would like assistance with your Buy Sell agreement.