You can no longer put off giving your Trust Deed a proper tune-up.
Why is this necessary?
There are at least three key reasons why you simply must have your Trust Deed reviewed and updated - and brought up to a modern standard:
· The recent High Court case of Bamford. This case was about how "trust income" is defined. If your Trust Deed is deficient in this area, you may end up paying more tax each year than is necessary;
· The Tax Office Practice Statement on "unpaid distributions" to bucket companies. If you ignore this new Practice Statement you may pay up to 63% tax on trust income distributed to companies. This is not a scare tactic. This is fact; and
· The need to adequately address how control of your Trust will pass when you die. If you ignore this issue, the wealth you hold in your trust may not end up where you intend. Most Trust Deeds do not address these issues as they should.
What does the service cover?
We offer two services.
1. Trust Deed Review & Update
We will review your Trust Deed and provide you with advice on whether your Trust Deed complies with Bamford's Case, the new Practice Statement on Division 7A and unpaid distributions, and general Estate Planning requirements.
We will make an honest recommendation whether, and to what extent, your Trust Deed needs updating. We charge a fixed fee of $330 (inc GST) for this review.
If your Trust Deed needs updating, then the Deed of Amendment will cost an additional $385 (inc GST).
2. Trust Deed Update
You may wish to skip the Trust Deed Review stage, and simply ask us to review and update your Trust Deed. We will do this for a fixed fee of $550 (inc GST). This includes both the review and update.
The reason this is cheaper than the Trust Deed Review (above) is that we do not need to stop our work and ask if you want to go ahead and update your Trust Deed.
You may also ask us to review your proposed Distribution Minutes for 2010, or provide you with model Distribution Minutes that match your Trust Deed. This service is provided for a fixed fee of $440 (inc GST).
Why use Andreyev Doman?
Because we honestly know what we are doing.
We have continually updated our own Trust Deeds for more than 10 years. We license our Trust Deeds (and other documents) to legal professionals around Australia, who recognize our expertise. We hold Masters Degrees in Taxation Law, are fellows of the Tax Institute of Australia and Fellows of the internationally recognised Society of Trust & Estate Practitioners. We are recognized experts in this area.
If you would like to book in a review and update to your Trust Deed, contact your Accountant, or contact Andrew, Catriona or Alex directly on 1300 654 590 or email alex@adlaw.com.au. For more information, visit our website at www.adlaw.com.au.
