Legal Changes which mean you need to update your will
Estate Planning Update – Autumn 2013
Legal Changes which mean you need to update your will, for many people, the reality is that they turn their minds to addressing estate planning issues less frequently than annually. For those people, longstanding changes may have had an impact on existing planning decisions they had previously made but have not got around to revising. Examples of such changes include the:
- Major changes to the superannuation landscape that have occurred, notably the tax free treatment of pension income when fund members are at least 60 years of age and the restrictions on contributions into superannuation.
- Greater scope for using cascading and asset specific binding death benefit nominations in an SMSF and ATO confirmation that nominations to SMSF trustees do not have to lapse after 3 years (assuming the SMSF deed is suitably drafted)
- Changes to the income taxation of trusts and life interests that have already occurred and the need for reimbursement provisions to ensure that a life or remainder tenant is not unduly out of pocket from payment of any CGT liability.
- Greater flexibility in how the income of a special disability trust can be spent – the federal government has recently notified trustees of the requirement to update special disability trust deeds to comply with the latest changes.
- Extension of the powers of the Family Court to include most opposite and same sex de facto relationships.