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August 2019

engage workers compensation RS

When is it time to engage workers compensation lawyers?

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When is it time to engage workers compensation lawyers?

It’s the hope of many that they’ll never need to put in a call on this front during their career. When the unexpected happens, having workers compensation professionals in your corner means that you are protected and you can take the time to heal as needed without financial pressures.

So, when do you engage workers compensation lawyers Sydney?

1. If you are injured at work, or become sick because of work.

Workers compensation is an insurance that covers employees who have either been injured at work or fall ill as a result of their work. A workers compensation lawyer Sydney can ensure you receive your wages while you are unable to work and fight for any medical expenses that are declined by the workers compensation insurer.

2. When bullying, harassment and intimidation leads to injury

The workplace should be a place to do just that: work. Every single employee, no matter the nature of their employment, has a right to feel safe and not to be bullied or harassed in their place of work. What about when things get too much? If a doctor diagnoses you with a physical or psychological injury and suggests you take time off work, you may need to make a workers compensation claim. If the claim is accepted, great. But what if it is rejected? That’s when you need workers compensation lawyers Sydney.

Bullying is behaviour that creates a health and safety risk. Victimising, intimidating, threatening or aggressive behaviour, repeated teasing and practical jokes, pressure to behave inappropriately, being excluded from work-related events or unreasonable work demands all constitute bullying. If you’ve been bullied at work, there are experienced lawyers who can help you navigate the workers compensation system to assist with your recovery.

When it comes to engaging workers compensation lawyers Sydney, you’ll need to show that there was an injury sustained during the course of work. Of course, you will need a medical certificate from your doctor to help initiate the claims process.

It should be noted, though, that a claim won’t be accepted if your distress is caused by ‘reasonable management action’ – that is, if you’ve been transferred, demoted, disciplined, retrenched, dismissed or otherwise treated in a way that management would argue is reasonable. Your workers compensation lawyers Sydney can advise on how strong your case is on initial consult.

3. If you are discriminated against in the workplace

Just as there is no place for bullying in the workplace, nor is there a tolerance of discrimination.

Discrimination in the workplace – this might be firing someone or demoting them based on their race, religion, gender or sexuality.

It is flat-out unlawful for an employer to discriminate against an employee. It doesn’t matter if they are full time, part time and casual employees, probationary employees, apprentices and trainees, or individuals employed for fixed periods of time or tasks.

If you sustain an injury as a result of discrimination, seek the help of workers compensation lawyers Sydney.

Workers compensation lawyers Sydney – meet Fern Lawyers

We are a Sydney-based law firm with a wealth of knowledge and expertise in the workers compensation Sydney, NSW jurisdiction. We work hard to win workers compensation cases for our clients to ensure they receive the payments or treatment they deserve.

It’s crucial, though, that you act quickly. Currently, there is a 6-month time limit for making a workers compensation claim. For common law negligence claims, your matter must commence in Court within 3 years of the injury. Seek our advice as quickly as possible after your workplace injury so we can help you in the best possible way.

SPEAK TO AN EXPERT
When is it time to engage workers compensation lawyers?

When is it time to
engage workers compensation
lawyers?

It’s the hope of many that they’ll never need to put in a call on this front during their career. When the unexpected happens, having workers compensation professionals in your corner means that you are protected and you can take the time to heal as needed without financial pressures.

So, when do you engage workers compensation lawyers Sydney?

1. If you are injured at work, or become sick because of work.

Workers compensation is an insurance that covers employees who have either been injured at work or fall ill as a result of their work. A workers compensation lawyer Sydney can ensure you receive your wages while you are unable to work and fight for any medical expenses that are declined by the workers compensation insurer.

2. When bullying, harassment and intimidation leads to injury

The workplace should be a place to do just that: work. Every single employee, no matter the nature of their employment, has a right to feel safe and not to be bullied or harassed in their place of work. What about when things get too much? If a doctor diagnoses you with a physical or psychological injury and suggests you take time off work, you may need to make a workers compensation claim. If the claim is accepted, great. But what if it is rejected? That’s when you need workers compensation lawyers Sydney.

Bullying is behaviour that creates a health and safety risk. Victimising, intimidating, threatening or aggressive behaviour, repeated teasing and practical jokes, pressure to behave inappropriately, being excluded from work-related events or unreasonable work demands all constitute bullying. If you’ve been bullied at work, there are experienced lawyers who can help you navigate the workers compensation system to assist with your recovery.

When it comes to engaging workers compensation lawyers Sydney, you’ll need to show that there was an injury sustained during the course of work. Of course, you will need a medical certificate from your doctor to help initiate the claims process.

It should be noted, though, that a claim won’t be accepted if your distress is caused by ‘reasonable management action’ – that is, if you’ve been transferred, demoted, disciplined, retrenched, dismissed or otherwise treated in a way that management would argue is reasonable. Your workers compensation lawyers Sydney can advise on how strong your case is on initial consult.

3. If you are discriminated against in the workplace

Just as there is no place for bullying in the workplace, nor is there a tolerance of discrimination.

Discrimination in the workplace – this might be firing someone or demoting them based on their race, religion, gender or sexuality.

It is flat-out unlawful for an employer to discriminate against an employee. It doesn’t matter if they are full time, part time and casual employees, probationary employees, apprentices and trainees, or individuals employed for fixed periods of time or tasks.

If you sustain an injury as a result of discrimination, seek the help of workers compensation lawyers Sydney.

Workers compensation lawyers Sydney – meet Fern Lawyers

We are a Sydney-based law firm with a wealth of knowledge and expertise in the workers compensation Sydney, NSW jurisdiction. We work hard to win workers compensation cases for our clients to ensure they receive the payments or treatment they deserve.

It’s crucial, though, that you act quickly. Currently, there is a 6-month time limit for making a workers compensation claim. For common law negligence claims, your matter must commence in Court within 3 years of the injury. Seek our advice as quickly as possible after your workplace injury so we can help you in the best possible way.

SPEAK TO AN EXPERT
Debt Recovery Lawyer RS

11 Ways a Debt Recovery Lawyer Can Help You Recover Your Debts

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11 WAYS A DEBT RECOVERY LAWYER CAN HELP YOU RECOVER YOUR DEBTS

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11 Ways a Debt Recovery Lawyer Can Help You Recover Your Debts
11 Ways a Debt Recovery Lawyer Can Help You Recover Your Debts

11 WAYS A DEBT RECOVERY LAWYER CAN HELP YOU RECOVER YOUR DEBTS

Someone owes you money. Perhaps a lot of money. You’ve done all that you can reasonably do, including make all those phone calls, send out those notices and write all those letters. You might have even attempted some form of arbitration not involving lawyers but none of it has resulted in the recovery your debts. You may have also read our previous blog that discusses the right time to engage a debt recovery lawyer.

So now that you’re considering legal steps it’s useful to know what lawyers can do to get you some resolution, closure and compensation.

The primary reason for commencing legal proceedings is to get a court judgment. This is a binding order from a court to perform an action. There are serious repercussions upon debtors for failing to comply with a court order, but in many cases you will need to enforce the judgment against the debtor.

Here are just a few of the ways a debt recovery lawyer’s involvement can help you achieve a positive outcome. In order of escalation, these options could be:

1. A formal letter of demand, stating specifically the grounds for payment, the amount, a due date (usually 14 days from delivery) and expressing an intention to commence court proceedings if the debt is not paid.

2. Statement of Claim. This is a document filed with the Court and served on the Defendant. In basic terms it says, “pay within 28 days or file a defence.” If the debtor doesn’t file a defence you can apply for default judgment.

3. Default Judgment. This means that judgment is entered against the Defendant by default for not complying with the Statement of Claim. Credit agencies get notified of the judgment and their ability to obtain finance approvals becomes severely limited. This is extremely inconvenient for many people, but even here, debts can remain unpaid. At this point, you might have to enforce judgment.

Even if the debt gets partially paid, you can still file for enforcement of the balance.

At this point “balance” can include any expenses, past, present and future, incurred in the debt recovery and these amounts usually depend on the size of the claim and the work completed to date.

3. Examination Notice. This is an order for the debtor to voluntarily disclose their finances to the Court. If the debtor fails to reply you can apply for a court order forcing the debtor to attend Court to disclose finances. If the debtor fails to do that, they can be arrested for the purposes of disclosing their financials.

Once both you and the Court know the debtor’s financials, you can proceed with various options. One option is a Garnishee Order for Debts. One type of order compels the bank to forward money directly from the debtors account to yours

If this isn’t an option, (because there’s not enough money in the account), then you can apply for an order to Garnishee Wages. This forces the debtor’s employer to directly pay an ordered amount to you in instalments until the debt is paid

If this isn’t an option, and the debtor has assets, the next step is to apply to the court for a Writ of Levy or Property. This authorises a sheriff to seize debtors goods for sale at auction. Proceeds from these sales are “attributed” to the debt and associated expenses such as interest and legal or other fees.

If the debtor is a “natural person” (a real person, not a company) and the debt is over $5000, you can issue a Creditor’s Petition for a sequestration order. If the orders are made, the debtor can be made bankrupt and their assets seized and administered

If the debtor is a company and the amount is over $2000, you, as the creditor, can apply for a Statutory Demand requiring payment in full in 21 days. If this fails then the court presumes that the company is trading insolvent, and this can lead to administration and a winding-up application in the Supreme Court. 

The good news is that you are NOT powerless in this situation. There’s a lot that you can do and a specialist debt recovery lawyer can advise and guide you through the process.  Better still, the legal fees and other expenses will be included in the debt and are sometimes recoverable from the debtor.

The important point here is that YOU are in charge and YOU determine what you are willing to do and how far you are willing to go. Knowing all your options is the important part, so now you can make an informed decision on your next steps.

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Debt Recovery RS

When Is The Right Time To Engage A Law Firm For Debt Recovery?

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When Is The Right Time To Engage A Law Firm For Debt Recovery?

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When Is The Right Time To Engage A Law Firm For Debt Recovery?
When Is The Right Time To Engage A Law Firm For Debt Recovery?

When Is The Right Time To Engage A Law Firm For Debt Recovery?

No one likes being owed money. It damages relationships, often irretrievably, and it’s understandable that you don’t want to stir up trouble, especially if it’s a business or personal relationship that is important to you.

If you’re reading this, chances are you’ve provided a service or products, or loaned money to a business partner or a friend and they haven’t paid you back. It’s likely you’ve already exhausted multiple options and now you’re wondering what you can do next.

Your initial attempts to recover your money might have been that:

  • You made numerous polite phone calls.
  • You sent a polite reminder possibly in the form of an email, so that you’d at least have something in writing.
  • You sent other, increasingly assertive emails.
  • You sent a more assertive and somewhat less polite reminder, this time as a letter.
  • You sent a final notice, warning that if the matter wasn’t settled by a particular date, you would have no further option than to “take the matter further”.

In our experience, these attempts to recover debts are often met with:

  • Apologies for late payment.
  • Promises that the payment would happen in due course.
  • Explanations as to why the debt had not yet been settled.
  • Excuses as to why the debt had not yet been settled.
  • More apologies and failed payment plan after failed payment plan.

But now you’ve come to the point where you’ve heard all the explanations and excuses, and the promises have come to sound more and more hollow – a payment that will never arrive. 

It’s understandable that you’ve gone through this process as it is . Depending on your personality and character, and the role you’ve played in this drama, you might have only taken a couple of steps before losing patience. Other people, with maybe a higher tolerance for this sort of pain, might have gone through all these steps, and a lot more, before even contemplating the idea that, “Maybe I should start talking to a debt recovery lawyer?”

It’s understandable, especially in business, that you might empathise when people are going through a “rough patch” and they might need a little leniency. But everything has a tipping point, and perhaps you’ve come to point when you realise that it’s now you who is at a loss.

The decision on whether to engage a debt recovery lawyer hinges on ONE key factor

Is the debt worth recovering? 

Legal proceedings will incur fees. An ethical and competent lawyer will be very clear about the likely costs involved in recovering the debt before you start the proceedings. You can then decide if that is a price you are willing to pay. If the debt is relatively small and there are little prospects of recovery (for example, the debtor is unemployed and owns no assets), then it may the case that you should write the debt off.  BUT, before making assumptions, it’s best to speak to a lawyer and understand what potential you have to either recover your assets or write off your losses.

After taking all the necessary factors into consideration, if you do decide to engage a lawyer, there’s a variety of recovery avenues and options that can be pursued. Give us a call today and find out how we can help.

To find out more, contact us today.

 

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Property Conveyancing RS

Why You Need A Property Lawyer For Your Conveyance

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WHY YOU NEED A PROPERTY
LAWYER FOR CONVEYANCE

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Why You Need A Property Lawyer For Your Conveyance

WHY YOU NEED A PROPERTY
LAWYER FOR CONVEYANCE

READ MORE
CONTACT US
Link
Why You Need A Property Lawyer For Your Conveyance
Why You Need A Property Lawyer For Your Conveyance

WHY YOU NEED A PROPERTY
LAWYER FOR CONVEYANCE

Buying and selling is all about contracts or agreements. While in Australia contracts don’t strictly speaking have to be written down, when you’re buying or selling any form of Real property or Real Estate – commercial, residential, building or land – the law in New South Wales (and that, of course, includes Sydney) requires that written contracts be prepared and signed. The process involved in transferring Real Estate Property, including the preparation of the sales contracts, mortgages and other documents is called “conveyancing”.

To ensure that you’ve dotted your “i’s” and crossed your “t’s” for a smooth purchase or sale, you’re always in better hands if you consult a Conveyancing Lawyer in Sydney. While engaging a lawyer is a safe way to finalise your transaction, it’s important to know that there is no legal requirement for you to deal with a licensed property lawyer. In fact, you always have the option of using a Sydney-based conveyancer or you can even do it yourself. While there’s no legal requirement for you to use a property solicitor, there are several good reasons why you would engage the services of a legal specialist when buying or selling property.

1. It’s complicated

Firstly, property transfer can be complicated. If you don’t have legal training you’re going to have to teach yourself all the necessary ins and outs, which can be time consuming and stressful. There’s a lot of documentation involved, including certificates, title searches and dealing searches, which means that you’re going to have to invest the time, energy and money to acquire those crucial documents.

2. Errors can be costly

If you don’t know what you’re looking for, it is likely you will miss really important details that can prevent the property from being sold on the settlement date. These mistakes can be very expensive to fix, especially if they are discovered late into the process. Of course, you will have to be careful when reviewing your documents, but this can be extremely difficult if you have not been exposed to the terminology or process in the past. 

3. Back-up plan

If you try to do it all yourself and get it wrong, there will be no one to point the finger at to get a quick resolution. In the unlikely event your Sydney conveyancing lawyer makes an error, you can complain to the NSW Legal Services Commissioner and make a claim against your lawyer’s insurance. If your Sydney conveyancer gets it wrong, you can complain to NSW Fair Trading. In either case, if there’s a stuff up, there’s a compensation fund to cover you for your loss.

4. Legal matters require legal specialists

Finally, you might want to consider a property solicitor over a non-lawyer conveyancer because a lawyer’s due diligence is more likely to uncover potential legal problems outside of the strict process of conveyancing and prepare you for them. In most cases, a conveyancer would be required to refer complex issues to a solicitor as they are not insured to provide legal advice.

When you’re making one of the largest investments of your life, you want to make sure that you have the right person assisting you with your conveyance.

5. Preparation is the key

Having said all that, it’s important to note that there are things you can do to make the purchase or sale easier for both parties. If you’re selling, it is best to speak with your property solicitor well before you put the property on the market to ensure that the relevant documentation is ready in time. The property solicitor can also work with your accountant to assist you with understanding your taxation obligations.

If you’re buying, then your property solicitor can work with your bank or broker to arrange finance or sort out any mortgagee issues.

There are so many variables involved in transfer of property, which is why we recommend that you engage a property solicitor as your conveyancer at the earliest available time to ensure the process is as quick and easy as it can be.

SPEAK TO AN EXPERT
Why You Need A Property Lawyer For Your Conveyance

WHY YOU NEED A PROPERTY
LAWYER FOR CONVEYANCE

Buying and selling is all about contracts or agreements. While in Australia contracts don’t strictly speaking have to be written down, when you’re buying or selling any form of Real property or Real Estate – commercial, residential, building or land – the law in New South Wales (and that, of course, includes Sydney) requires that written contracts be prepared and signed. The process involved in transferring Real Estate Property, including the preparation of the sales contracts, mortgages and other documents is called “conveyancing”.

To ensure that you’ve dotted your “i’s” and crossed your “t’s” for a smooth purchase or sale, you’re always in better hands if you consult a Conveyancing Lawyer in Sydney. While engaging a lawyer is a safe way to finalise your transaction, it’s important to know that there is no legal requirement for you to deal with a licensed property lawyer. In fact, you always have the option of using a Sydney-based conveyancer or you can even do it yourself. While there’s no legal requirement for you to use a property solicitor, there are several good reasons why you would engage the services of a legal specialist when buying or selling property.

1. It’s complicated

Firstly, property transfer can be complicated. If you don’t have legal training you’re going to have to teach yourself all the necessary ins and outs, which can be time consuming and stressful. There’s a lot of documentation involved, including certificates, title searches and dealing searches, which means that you’re going to have to invest the time, energy and money to acquire those crucial documents.

2. Errors can be costly

If you don’t know what you’re looking for, it is likely you will miss really important details that can prevent the property from being sold on the settlement date. These mistakes can be very expensive to fix, especially if they are discovered late into the process. Of course, you will have to be careful when reviewing your documents, but this can be extremely difficult if you have not been exposed to the terminology or process in the past. 

3. Back-up plan

If you try to do it all yourself and get it wrong, there will be no one to point the finger at to get a quick resolution. In the unlikely event your Sydney conveyancing lawyer makes an error, you can complain to the NSW Legal Services Commissioner and make a claim against your lawyer’s insurance. If your Sydney conveyancer gets it wrong, you can complain to NSW Fair Trading. In either case, if there’s a stuff up, there’s a compensation fund to cover you for your loss.

4. Legal matters require legal specialists

Finally, you might want to consider a property solicitor over a non-lawyer conveyancer because a lawyer’s due diligence is more likely to uncover potential legal problems outside of the strict process of conveyancing and prepare you for them. In most cases, a conveyancer would be required to refer complex issues to a solicitor as they are not insured to provide legal advice.

When you’re making one of the largest investments of your life, you want to make sure that you have the right person assisting you with your conveyance.

5. Preparation is the key

Having said all that, it’s important to note that there are things you can do to make the purchase or sale easier for both parties. If you’re selling, it is best to speak with your property solicitor well before you put the property on the market to ensure that the relevant documentation is ready in time. The property solicitor can also work with your accountant to assist you with understanding your taxation obligations.

If you’re buying, then your property solicitor can work with your bank or broker to arrange finance or sort out any mortgagee issues.

There are so many variables involved in transfer of property, which is why we recommend that you engage a property solicitor as your conveyancer at the earliest available time to ensure the process is as quick and easy as it can be.

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Asset Protection RS

Protecting Your Assets And Minimising Tax: An Overview Of Trusts

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PROTECTING YOUR ASSETS
AND MINIMISING TAX:
AN OVERVIEW OF TRUSTS

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Protecting Your Assets And Minimising Tax: An Overview Of Trusts

PROTECTING YOUR ASSETS
AND MINIMISING TAX:
AN OVERVIEW OF TRUSTS

READ MORE
CONTACT US
Link
Protecting Your Assets And Minimising Tax: An Overview Of Trusts
Protecting Your Assets And Minimising Tax: An Overview Of Trusts

PROTECTING YOUR ASSETS AND MINIMISING TAX: AN OVERVIEW OF TRUSTS

Bill Shorten kicked off this financial year with a pledge to increase the tax rate for income distributed through selected trusts. This sparked debate amongst politicians and community members alike on the effect the law change would have on Australians. Some agreed that it is a fair approach, while others felt “it was a direct attack on small business owners.”

In a recent study by The Australia Institute , it was reported that approximately 21.6% of Australia’s national income was run through trusts.

The report goes on to say:

“ATO figures show there are 823,448 trusts with assets of $3.1 trillion and a total business income of $349.2 billion” – The Australia Institute.

Despite the media coverage, many Australians are unaware of the potential benefits to be gained by setting up a trust structure for their investment portfolio or business.

Here we explain the nature of a trust and how you may be able to use its structure to your advantage.

WHAT IS A TRUST?

A trust is established when a person transfers money or property to another person / company (“trustee”) and the trustee, as the legal owner runs and operates the assets on behalf of their selected beneficiaries.

What this means is that a person can transfer money or assets to a person / company and appoint people of their choosing to benefit from the monies generated by those assets (“beneficiaries”). The beneficiaries do not own the property in the trust. They simply benefit from its income in accordance with the rules the trustee outlines in the trust deed.

 

WHY DO PEOPLE SET UP TRUSTS?

There are a number of reasons why families and investors set up trusts. It really depends on your situation and what you are trying to achieve through the structure.

Some of the more popular reasons include:

1. PROTECTION OF ASSETS

Asset protection is one of the key benefits offered through a family trust. Investors often protect their assets by transferring them to a trustee company or person, who then becomes the “legal owner” of those assets.

Assuming that a beneficiary of the trust was being pursued by creditors, the property in trust would be protected (providing it was transferred into the trust outside of the claw-back period).

While there are rare circumstances that can lead to the collapsing of trusts, in most circumstances your assets will be protected from creditors. You should consult a lawyer to ensure that your proposed arrangement does not fall outside the scope.

2. INHERITANCE AND ESTATE MANAGEMENT

The traditional method of inheritance is for ownership of property to pass to the beneficiary. By this method, the beneficiary has sole discretion to deal with that property as and how they please. A testamentary trust will see that the assets are held on trust and distributed in accordance with the trust deed.

Testamentary trusts are often used in situations where there are minors involved who cannot manage assets on their own. It can also be used as an asset protection plan if it is likely a beneficiary (usually loved ones) will go on an irresponsible spending spree when you pass. A protective trust provides less flexibility to the beneficiaries and will see that your assets are managed according to your wishes.

3. TAX SAVINGS

The third and currently controversial reason behind establishing a trust is profit distribution among the beneficiaries. If set up properly, this can result in taxation savings. In Australia, an individual does not pay tax on the first $18,200 earned in a financial year. The tax rate increases incrementally as per the tax bracket that is released each year.

As the law currently stands, families are allowed to distribute monies to low income earning beneficiaries at their discretion. The flow on effect is that individuals may take advantage of the tax-free threshold and lower tax rates for non-income or low-income earning individuals.  

SETTING UP A TRUST – HOW MUCH DOES IT COST?

The overall costs of setting up a trust can vary, depending on the complexity and uniqueness of the trust arrangement. For example, if you elect to use a company as the trustee, there will be company set-up costs and registration fees in addition to the legal fees of drafting the trust deed. Fern Lawyers are here and able to provide a quote – simply give us a call and we’d be glad to assist.

SPEAK TO AN EXPERT
Protecting Your Assets And Minimising Tax: An Overview Of Trusts

PROTECTING YOUR ASSETS AND MINIMISING TAX: AN OVERVIEW OF TRUSTS

Bill Shorten kicked off this financial year with a pledge to increase the tax rate for income distributed through selected trusts. This sparked debate amongst politicians and community members alike on the effect the law change would have on Australians. Some agreed that it is a fair approach, while others felt “it was a direct attack on small business owners.”

In a recent study by The Australia Institute , it was reported that approximately 21.6% of Australia’s national income was run through trusts.

The report goes on to say:

“ATO figures show there are 823,448 trusts with assets of $3.1 trillion and a total business income of $349.2 billion” – The Australia Institute.

Despite the media coverage, many Australians are unaware of the potential benefits to be gained by setting up a trust structure for their investment portfolio or business.

Here we explain the nature of a trust and how you may be able to use its structure to your advantage.

WHAT IS A TRUST?

A trust is established when a person transfers money or property to another person / company (“trustee”) and the trustee, as the legal owner runs and operates the assets on behalf of their selected beneficiaries.

What this means is that a person can transfer money or assets to a person / company and appoint people of their choosing to benefit from the monies generated by those assets (“beneficiaries”). The beneficiaries do not own the property in the trust. They simply benefit from its income in accordance with the rules the trustee outlines in the trust deed.

 

WHY DO PEOPLE SET UP TRUSTS?

There are a number of reasons why families and investors set up trusts. It really depends on your situation and what you are trying to achieve through the structure.

Some of the more popular reasons include:

1. PROTECTION OF ASSETS

Asset protection is one of the key benefits offered through a family trust. Investors often protect their assets by transferring them to a trustee company or person, who then becomes the “legal owner” of those assets.

Assuming that a beneficiary of the trust was being pursued by creditors, the property in trust would be protected (providing it was transferred into the trust outside of the claw-back period).

While there are rare circumstances that can lead to the collapsing of trusts, in most circumstances your assets will be protected from creditors. You should consult a lawyer to ensure that your proposed arrangement does not fall outside the scope.

2. INHERITANCE AND ESTATE MANAGEMENT

The traditional method of inheritance is for ownership of property to pass to the beneficiary. By this method, the beneficiary has sole discretion to deal with that property as and how they please. A testamentary trust will see that the assets are held on trust and distributed in accordance with the trust deed.

Testamentary trusts are often used in situations where there are minors involved who cannot manage assets on their own. It can also be used as an asset protection plan if it is likely a beneficiary (usually loved ones) will go on an irresponsible spending spree when you pass. A protective trust provides less flexibility to the beneficiaries and will see that your assets are managed according to your wishes.

3. TAX SAVINGS

The third and currently controversial reason behind establishing a trust is profit distribution among the beneficiaries. If set up properly, this can result in taxation savings. In Australia, an individual does not pay tax on the first $18,200 earned in a financial year. The tax rate increases incrementally as per the tax bracket that is released each year.

As the law currently stands, families are allowed to distribute monies to low income earning beneficiaries at their discretion. The flow on effect is that individuals may take advantage of the tax-free threshold and lower tax rates for non-income or low-income earning individuals.  

SETTING UP A TRUST – HOW MUCH DOES IT COST?

The overall costs of setting up a trust can vary, depending on the complexity and uniqueness of the trust arrangement. For example, if you elect to use a company as the trustee, there will be company set-up costs and registration fees in addition to the legal fees of drafting the trust deed. Fern Lawyers are here and able to provide a quote – simply give us a call and we’d be glad to assist.

SPEAK TO AN EXPERT