CGW Tax Lawyers have developed a range of special purpose trust deeds and trust amendment strategies that provide significant tax and commercial benefits and unique estate planning outcomes.
Negative gearing trusts
This structure allows high income individuals to claim a tax deduction for interest borrowed to acquire investment assets in a discretionary trust (supported by private ruling).
Child maintenance trusts
A complying child maintenance trust allows clients with child maintenance obligations to satisfy these obligations from pre-tax earnings. These trusts can be set up at any time while there is a subsisting maintenance obligation – not just at the time a property settlement is negotiated.
Generational transfer trusts and amendments
This strategy allows clients with substantial assets in discretionary trusts to effectively convert the trust to a fixed trust on their death to facilitate their estate planning strategy. This can be done without duty or tax consequences.
Post death testamentary trusts
Where a Will does not give assets to a testamentary trust, in some limited cases one can be established after death. Income generated in that trust can then be taxed to children aged under 18 at adult income tax rates.
Superannuation proceeds trusts
Superannuation proceeds trusts can be useful to receive superannuation death benefits instead of them going directly to dependants or the estate.