The Tax Office has issued a draft self-managed super fund determination which states that a superannuation benefit can be considered to be ‘cashed’ at the time a cheque or promissory note is issued to the member or beneficiary, provided the money is payable immediately (ie not post-dated) and the trustee takes all reasonable steps to ensure that the money is paid promptly (ie generally within a few business days).
A person entering into business should weigh up the risk of losing their personal assets against the cost (stamp duty, capital gains and government fees) of transferring those assets to their spouse to insulate them from creditors. The cost of the asset transfer can be a significant impediment in the decision to quarantine assets. What if there was a simple and cost effective transfer process where the Government could not levy duties and tax?
For those of you who are married or who are in a de facto relationship, there is an easy and cost effective way.
Mr James Turnbull, a client of knp has recently used a novel and safe procedure to transfer all of his personal assets to his spouse prior to taking equity partnership in the Specialist Family Law Firm – Berry Family Law.
James reports the procedure is simple, effective and legal. He calculated a personal saving on stamp duty and capital gains tax at over $150,000.00 by using a procedure which would cost about $3,000.00 in legal fees. These fees may even be tax deductible.
There is another distinct benefit in the procedure. The document can be used to usurp the Family Law Act and avoid an expensive visit to the Family Court should a personal relationship fail.
If you would like to discuss this matter further please contact Andrew Freeman or his personal assistant Sian Dunn, who can refer you to Mr James Turnbull. James will be happy to talk with clients of knp for up to thirty minutes free of charge or obligation about the procedure and whether it can work for you.
Article by James Turnbull, Berry Family Law
