It is important to make sure you know what your responsibilities and opportunities are well before the end of the financial year. For advice on any of the items in this checklist, contact Bernadette Duell, Jade Lattimore or Janene Bon.
- All trust distributions made in the year ended 30 June 2014 must be recorded in writing by the trustee of the trust on or before 30 June 2014. The trustee resolution must be made in accordance with the terms of the trust deed. The trust accounts do not, however, need to be prepared by 30 June 2014, so the resolution does not need to specify an actual dollar amount for the resolution to be effective in making the beneficiary presently entitled (unless the trust deed specifically requires it). I
- Is your trust deed up to date? Does it take into account recent changes in the law, such as the Bamford decision?
- Maximise your retirement funding – know what you can contribute and when and how those contributions need to be made.
- Is your superannuation trust deed up to date?
- Some retail funds and self managed funds only permit binding death benefit nominations to last for 3 years. Is your binding death benefit nomination up to date? Does it specify the beneficiary or beneficiaries you would like to provide for?
- Is your investment strategy up to date and maximising the available options for investment such as borrowing arrangements and in specie contributions of real estate?
- Is there a charitable cause or entity you would like to donate money to? You may be able to receive a tax deduction for gifts to these causes and entities and receive that deduction this financial year.
- If you are planning on making a substantial donation to a charity or a deductible gift recipient, you may want to consider establishing your own charitable foundation, called a Private Ancillary Fund (PAF). HHG can assist in establishing a PAF for you and have this PAF up and running by 30 June 2014 so that a donation to your own fund can be tax deductible to you this financial year.
And don’t forget your…
- Review your estate planning requirements. Do you have a Will, an Enduring Power of Attorney, an Enduring Power of Guardianship and/or an Advance Health Directive? Are they still appropriate and up to date? Do you need to appoint a new Executor, Guardian of minor children, Attorney or Guardian? For your Will, would you like to change your beneficiaries or your distribution plan? Common triggers to update these documents include marriage, death, separation, divorce, birth of a child, health conditions, acquisition of assets, establishing a self managed superannuation fund, establishing a family trust, and engaging in new business.
- Insurance – will your spouse have adequate funds to maintain their existing lifestyle when you pass away? Will your business partner be able to afford to pay for your share of the business to your loved ones when you pass away? Do you need a new valuation of your business and as a result need to increase your insurance cover?