|
Publications and Documents:
Adviser Tips:
Adviser Updates:
Individual Updates (Most Recent First): Tax Treatment of Self-Ownership Agreements Vested and Indefeasible Interest Simplifying the Valuation Issue Simple or Complete Succession?
|
Self-Ownership without a Contemporaneous Buy/Sell Agreement: The Effect on "Original Beneficial Ownership"
The concept of "original beneficial ownership" is fundamental to the CGT exemption for Death Benefits. Most Advisers assume that the exemption will be available for Buy/Sell Cover if the Life Insured is the Policy Owner, whether or not the parties sign a Buy/Sell Agreement. As a result, some insurance companies estimate that 90% of Buy/Sell Cover is not backed up by a Buy/Sell Agreement. The High Court has analysed the concept of "beneficial ownership" in a number of land tax cases in recent years. While these cases are not immediately relevant to the taxation of Insurance Policies, they do contain views that could raise doubts about whether the Life Insured is the "beneficial owner" of the Policy where a Buy/Sell Agreement has not been signed. Please click here to read about the potential adverse CGT implications of not having a contemporaneous Buy/Sell Agreement.
|
Adviser Tip The One Page Strategy is designed to help you simplify Succession Planning. It helps you understand your needs, it helps you quantify them, it helps you cost them, and it helps you prioritise them.
Ian Gray travels to most capital cities regularly throughout the year and is available for Meetings. Please click here to see his availability in Brisbane, Sydney, Melbourne, Adelaide and Perth. Please contact us to arrange an appointment or teleconference.
|
