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Taxing times for children under 18 – should they save or should they spend?

Friday, May 27, 2011 - 16:42 | Posted By: The Privately Held Business Team
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Families need to urgently assess the impact of the 10 May Federal Budget announcement to restrict the access by minors to the low income tax offset (LITO) for the 2011-12 income year onwards.  On 26 May 2011, the detail of this measure emerged when Tax Laws Amendment (2011 Measures No 4) Bill 2011 was introduced into Parliament with the claim that "the low income tax offset was never meant to act as a tax minimisation vehicle".  Some actions may be required by 30 June 2011 to limit the long-term impact of this measure.

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Estate planning, Part 1: Trusts

Monday, October 4, 2010 - 16:20 | Posted By: The Privately Held Business Team

We all know how important it is to have a Will, but for business owners it is vital that they have a complete estate plan. Generally, only assets held in your personal name may be distributed via your Will. However, for tax and asset protection purposes, the assets controlled by many business owners are held by companies, discretionary (family) trusts and Self Managed Superannuation Funds (SMSF).

Although assets within these structures may not form part of your estate, you can still influence the future control of these structures through your estate plan.

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The benefits and pitfalls of trusts

Monday, September 27, 2010 - 16:47 | Posted By: The Privately Held Business Team

Despite Trusts being extremely tax effective, some people have an aversion to them because of perceived complexities and favour alternate simpler structures such as partnerships or companies.  Trusts do have some peculiarities, but here we highlight some of the benefits and pitfalls of trusts, to clarify the true position.

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To trust or not to trust: What are trusts?

Thursday, September 16, 2010 - 11:06 | Posted By: The Privately Held Business Team

A trust is a legal relationship where one party (the trustee/s) holds property for the benefit of another party (the beneficiaries).  Trusts trace their origins back to medieval times in the United Kingdom where ‘uses’, as they were then called, operated to allow men who went off to the Crusades to legally assign their residential property to another male family member, provided they allowed his wife to continue to live in the residence.  It was used as a mechanism to overcome the inability for women to own property. 

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