In this edition:

Welcome

Super reform passed by both houses

Super bills passed - what you DON'T need to do to prepare

Deductions: what you cannot claim

Illness, Wills and Death - an overview

The Need for a Will

Death without leaving a Will, means you have died "intestate". Similarly, if you die leaving a Will which does not dispose effectively of all or part of your estate you have died wholly or partially "intestate". "Intestate", results in your estate being distributed according to the intestacy laws operating in the state at the time of your death.

When a sole director of a company dies without leaving a will, the complications and distress can have an even greater impact. The death will usually leave the company without any person properly authorised to immediately manage the company as such a Will is very important.

If you would like your family, friends, Church, favourite charity etc to benefit from your estate according to your wishes, make sure that you have a Will, professionally prepared by an experienced solicitor, and that you regularly review it from time to time.

In the Event of Death

In the event of death if an individual was lodging tax returns prior to their death in most cases the accountant will need to prepare a tax return to date of death and a deceased estate tax return will need to be lodged from the date of death till when probate is granted.

A new tax file number will be needed for the estate return. We will also need a copy of the death certificate in order to apply for the new tax file number.

Taxation of the return to date of death is the same as if the individual were alive. You receive the full tax-free threshold and are taxed at individual rates.

If the individual was receiving benefits from the Government a surviving spouse may be entitled to a Bereavement Allowance or a Bereavement Payment. Please visit the Human Services site for more information or contact your manager or partner at Goodwin Chivas and Co.

Terminal Illness Assistance

Should an individual have a terminal medical condition they may be able to access super benefits. There are certain conditions that need to be met and documents required prior to the funds being released. Please visit the ATO website for further information.

If you need assistance with any of the above matters or to discuss further please contact us at Goodwin Chivas and Co.