The introduction of the transfer balance cap rules from 1 July 2017 means that more funds will be forced out of superannuation on the death of a member of a superannuation fund and the use of a testamentary trust may provide an appropriate destination for such superannuation death benefits. This presentation reviewed:
- the benefits of a testamentary trust including the tax and asset protection advantages
- tips in structuring a testamentary trust including essential clauses which should be in the terms of a testamentary trust
- how a testamentary trust can be devised that allows for the tax-free receipt of the superannuation death benefits, that is how to establish a superannuation proceeds trust
- CGT aspects of a testamentary trust
- the tax aspects bequeathing a main residence to a testamentary trust.