During the stages of administration of a deceased estate, a beneficiary may become presently entitled to the income. It is important to recognize this to determine who is responsible for the payment of income tax on that income. This session covers the various stages of administration, including:
Can a beneficiary be presently entitled to estate income prior to the estate being fully administered?
What if payments of income are paid to the beneficiaries whilst the estate is in administration?
When is a deceased estate fully administered?
Does the estate have to be wound up for beneficiaries to be presently entitled to the income?
How is the income of a deceased estate taxed in the financial year it is fully administered (IT 2622)?
Deceased estates and CGT assets (TR 2004/D25):
- When does a beneficiary have absolute entitlement?
- CGT event E5 and the Division 128 exclusion
- The fungible asset test
- Worked examples
The taxing of a deceased estate:
- For the first three income years after death
- More than three years after death
In this webinar we will delve into the intricacies of Family Trust Elections (FTEs). Through the exploration of real-life case studies, we'll uncover practical tips and potential pitfalls associated with both making and managing FTEs. Our discussion will cover:
Understanding the motivations behind opting for an FTE and scenarios that may lead trustees to reassess their decisions.
Examination of FTE-related issues as identified by the Australian Taxation Office (ATO) during their reviews.
Clarification on the necessity of an Interposed Entity Election (IEE) for receiving trust distributions without triggering Family Trust Distribution Tax (FTDT).
Discussion on the flexibility to revoke an FTE when its original purpose becomes irrelevant and adapting to evolving circumstances.
Assessment of the impact of a test individual's demise on a FTE.
Evaluation of potential implications for the sale of entities subject to FTEs or IEEs.
Exploration of inadvertent triggers of FTDT and potential avenues for reversal.
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