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New – Order your Income Streaming amendments online
16 May, 2013
Topdocs now enables you to order your Discretionary, Unit and Hybrid Trust income steaming amendments online through the Topdocs Document Portal.
Topdocs income streaming amendment packages are the most comprehensive in the market. Our amendments include:
Individual tailoring by a specialist Trust solicitor
Most providers prepare a generic amendment of your Trust without examining the terms of the existing Trust Deed. Not only can this create inconsistent provisions and language in the Deed, but can create costly conflicting provisions that could invalidate the income streaming provisions or even result in resettlement issues.
Topdocs income streaming amendments on the other hand are individually tailored. We review the current terms of each Trust Deed thoroughly before preparing the variation, then amend the terms of the Trust Deed in a manner that is consistent with the existing provisions and terminology of the Trust - ensuring your amendment does not create any conflicting provisions in the Trust Deed.
Individual letters of legal sign off
Each of our income streaming amendments come with an individual letter of legal sign off from our associated legal practice, Topdocs Legal Pty Ltd, providing you with comfort that your amendments are effective and have been prepared in line with the terms of the current trust deed for the Trust.
What terms do we amend to enable income streaming?
When we prepare our individually tailored income steaming amendments, we make the following amendments to the provisions to the Trust:
- We ensure the trust deed has a definition of trust income that allows the inclusion of capital gains and also ensure the trustee has the discretion to adopt a different concept of income to provide maximum flexibility.
- We ensure the income definition may exclude “notional amounts” such as franking credits as the Commission has stated in the decision impact statement of Clark’s case that a beneficiary cannot be presently entitled to notional amounts.
- We insert provisions to give the trustee discretion to apply outgoings against income or capital and make distributions out of gross income (which may allow distributions out of gross income to preserve franking credits etc).
- We ensure flexibility to allow a trustee to resolve to distribute income or determine what concept of income applies after 30 June in any year, should the law change. The Commissioner has indicated that, where the deed stipulates that income distributions must be made by 30 June, he will insist on strict compliance.
- We include adequate “attribution” provisions to ensure receipts and outgoings retain their character in order to pass on the benefits to the beneficiaries/unit-holders with any special entitlement.
For more information about our income streaming amendment services, please visit our Trust Amendments page.
To order an income streaming amendment, simply log into the Topdocs Document Portal and select the amendment you require from the New Orders Tab.
Combine your orders and save time!
16 May, 2013
Completing multiple order forms when you set up a structure for a client can be a time consuming process. With Topdocs, you can now order multiple documents in the same order form, online.
Combining your document order is easy and a great time saver. When you start a document order, we automatically provide you with a list of related documents available to add to your order. You simply select any document(s) you would like to add to the order and follow the prompts. Best of all, you only have to enter names and addresses once throughout the order – saving you time and ensuring your documents are error-free.
Combined orders available
Outlined below are the current documents you can combine in a single order.
Super Fund establishment
Topdocs makes it easier to set up a new Super Fund as you can now order up to four key documents in a single order. These include:
- Superfund establishment
- Corporate Trustee registration
- Investment Strategy
- ABN | TFN Registration with the ATO
Discretionary Trust
Ordering a Discretionary Trust now comes with the option to include a Corporate Trustee registration in the same order. If required, you can even include a Company seal in your order.
There’s more on the way
We’re already working on providing you with more combined order options. These will be available shortly, and will include:
- Unit Trust and Corporate Trustee Company
- Bare Trust and Corporate Trustee Company
- Super Fund and Binding Death Benefit Nomination
Combining your order
When you order a SMSF Establishment or Discretionary Trust, you will be automatically provided a list of the related document(s) that are available to include in that order. Simply select the document(s) you would like to add to the order, click OK and follow the prompts
For more detailed information about ordering multiple documents in a single order, see our Combined orders factsheet.
Updating trust deeds using the Topdocs SMSF Deed Update system
16 May, 2013
One of the key features of the Topdocs SMSF Deed Update system is the ability to easily keep your clients’ trust deeds up-to-date. The system, which is part of the Topdocs Document Portal and free to use, provides you with the flexibility to choose how you would like to update a client’s trust deed – annually or 'on-demand’ (anytime).
Updating a client’s trust deed using the Update On-demand facility in the Topdocs SMSF Deed Update system is quick and easy. Simply select the Trust Deed(s) you wish to update from your list of Super Funds displayed in the SMSF Deed Updates section of the Topdocs Document Portal, click Update Selected Funds, and you will receive your Trust Deed amendment documents instantly via email. You can also receive your documents professionally printed, bound and express posted if you prefer.
Using the On-Demand feature in the Topdocs SMSF Deed Update system means you don’t have to fill in any order forms, and you can update as many Trust Deeds as you want in a single batch. Best of all, your Super Fund list is automatically updated to show the current governing rules for each Super Fund, with the Fund’s previous deeds also retained for audit purposes.
See how to update a client’s trust deed using the on-demand method >>
Using the Topdocs SMSF Deed Update system, you can elect to have a Fund’s trust deed updated automatically each year. That means each year the Fund will automatically receive a new set of governing rules, product disclosure statement and trustee resolution by email, or professionally printed, bound and delivered by express post, depending on your preference.
The benefit of having a fund’s trust deed updated each year is the comfort of knowing the trust deed is always compliant and up to date. And since the process is automated, once it’s set up, it doesn’t require any further time or involvement from you.
See how to set up automatic annual deed updates for your clients >>
Like to know more?
You can learn more about the Topdocs SMSF Deed Update system by watching the overview video here.
Revolutionary SMSF Deed Update system
13 February, 2013
Topdocs is very excited to announce the release a significant addition to our suite of business solutions, the Topdocs SMSF Deed Update system.
Designed to save time and increase productivity, the Topdocs SMSF Deed Update system provides a powerful solution for keeping your SMSF trust deeds up to date. Gone are the days of completing order forms and collating deeds whenever legislation changes, using the Topdocs SMSF Deed Update system you have the flexibility to choose if you want a Fund’s deed updated automatically each year or updated whenever you want.
The SMSF Deed Update system is accessed in the Topdocs Document Portal, with all of your Topdocs super funds being conveniently listed, giving you immediate access to all your funds’ details online. And to help you convert deeds created by other suppliers so you can manage them in the SMSF Deed Update system too, we’ve provided a number of easy-to-use conversion tools for you to use.
The release of the Topdocs SMSF Deed Update system is the result of 18 months of planning and development. The system has been carefully designed with a clear understanding of the requirements of accountants, financial planners and SMSF administrators in mind. As a result, it is unlike any other deed update system currently available in Australia.
The SMSF Deed Update system is available now. You can see it in action by watching the overview video here.
Should you have any queries about the SMSF Deed Update system, feel welcome to contact the team at Topdocs.
Topdocs integration with XPLAN and Class Super
22 January, 2013
The team at Topdocs is very excited to announce new functionality that enables you to order your documents directly from XPLAN or Class Super. Plus, the client data already held in XPLAN or Class Super is automatically prefilled into your document order, saving you valuable time and ensuring information accuracy.
This new functionality is available now and ready to use.
For step-by-step instructions on how to use this new functionality, you can watch the videos or download the factsheets on our Integration page.
Holiday office hours
18 December, 2012
The Topdocs office will close at Noon on Friday 21 December 2012 and will reopen at 9am on Wednesday 2 January 2013.
On behalf of the Topdocs team, we would like to wish you a happy and safe break, and we look forward to working with you again in 2013.
Financial planners – key beneficiaries of systems’ integration
7 December, 2012
THE decision by one of Australia’s leading providers of SMSF, company and trust documents, Topdocs, to integrate its document automation system with wealth management software, XPLAN, will dramatically simplify the document ordering process and enhance document accuracy.
It will enable financial planners to purchase, access, complete and store electronic self-managed super fund, company trust and pension documents in the one system.
It will also enable documents to be pre-populated with client information stored in Xplan’s client management module, eliminating cumbersome data entry and enhancing compliance requirements.
Developed by IRESS, XPLAN is Australia's leading financial planning software for wealth management professionals.
IRESS is the principle supplier of share market and wealth management systems with over 650 staff in 14 offices worldwide including Australia, Asia, New Zealand, South Africa, Canada and the United Kingdom.
The Lonsdale Financial Group will be the first dealer group in Australia to roll out the integrated Topdocs/XPLAN system to its network of over 300 advisers across Australia early in the New Year.
According to Topdocs’ managing director, Jake Spakman, the decision to integrate its document automation system with XPLAN, was driven by the desire to help financial planners cut the administrative burden of ordering and completing documents.
“We’re always looking for new ways to improve the user experience. By integrating our system with XPLAN, financial planners can now order their documents from within XPLAN, saving up to 20 minutes each time by not having to rekey client data.”
IRESS Executive Product Manager for Wealth Management, Aaron Knowles, says the Topdocs/XPLAN integration is another way in which IRESS can help financial planners improve business efficiency.
“Our customers rely heavily on the accuracy of client data for reporting, data-mining, advice creation and practice management, so it makes sense that we leverage that data directly into the Topdocs’ documents, saving time and avoiding unnecessary duplication of effort.”
Progressive dealer group, Lonsdale Financial Group has been quick to recognize the value of the integrated system.
Says Lonsdale CEO, Mark Stephen: “We’re continuously searching for smart initiatives that benefit both our associates and their clients. The Topdocs/XPLAN systems’ integration is undoubtedly one of those and will result in significant benefits in terms of improved accuracy and less time spent on administration.”
The integration is available in Version 2.3 of XPLAN and upwards of that.
SMSF Borrowing - a new Taxpayer Alert from the ATO
06 December, 2012
The ATO issues Taxpayer Alerts as a caution to taxpayers when it is concerned that arrangements being entered into may not comply with tax law. In this instance, the caution is aimed at trustees of SMSFs who are considering investing, or who have already invested, in property under a SMSF borrowing arrangement and/or through a unit trust.
On 20 November 2012, the ATO released a Taxpayer Alert, TA 2012/7, titled: ‘Self managed superannuation funds arrangements to acquire property which contravene superannuation law’.
Generally, such a caution is issued after the ATO has noticed an emerging trend of incorrect or inappropriate structures, in an attempt to alert taxpayers that such plans may not receive ATO approval.
TA 2012/7 deals with a SMSF investing in property through a SMSF borrowing arrangement either through:
- a direct investment by the SMSF in the property; or
- investment by the SMSF in a unit trust which invests in the property.
The ATO, in the Taxpayer Alert, is not suggesting either option is causing them concern; it is the underlying actions which they are finding to be at fault.
Additionally, the purpose of the Taxpayer Alert does not appear to be to scare trustees away from using SMSF borrowing arrangements to purchase investments in their SMSF - rather, to ensure that when and if they do decide to proceed, they do not make mistakes which may need to be unwound, possibly at significant expense.
We would expect that the areas of concern raised by the ATO will generally not be an issue for trustees who have received proper advice prior to proceeding with an investment under a SMSF borrowing arrangement. The ATO’s areas of concern as listed in Taxpayer Alert TA 2012/7, with our brief explanation, are:
Direct investment by the SMSF in the property |
|
ATO concerns |
Explanation |
| Borrowing and title held in the name of a member of the SMSF | The trustee of the SMSF should be the borrower. The title to the asset must be held by the bare trustee |
| Title held in the name of SMSF trustee | The title to the asset must be held by the bare trustee |
| Bare trustee and bare trust not in existence when the contract to purchase is signed |
It appears the ATO is suggesting the bare trustee and bare trust must be in existence when the contract is signed, which is different to general practice in a number of states accross the superannuation industry. Topdocs has recommended that:
We expect the ATO will provide some positive clarification on this point and we will update this document when that has been received. |
| The SMSF trustee acquires a residential property from the member | Under a SMSF borrowing arrangement, the trustee of the SMSF is only permitted to acquire an asset it could ordinarily acquire. As it is ordinarily prohibited from acquiring residential property from a member, the acquisition under a SMSF borrowing arrangement is similarly prohibited |
| Property comprising 2 or more titles is acquired, without the presence of impediments which would prevent the titles being dealt with separately | The legislation permits the acquisition of a ‘single acquirable asset’ which, in most instances requires that the property be on one title. Exceptions to that rule occur generally when there is a legal or physical impediment which precludes 2 titles being dealt with separately (e.g. apartment and car park, factory building over multiple titles, farm with major building sited across titles) |
| SMSF acquires vacant block of land under borrowing arrangement. Land is held by bare trustee following settlement. SMSF constructs residence on property | The character of the asset has changed from vacant land to house & land, making the completed asset a ‘replacement asset’. Replacement of assets is permitted in very limited circumstances, usually only for some share and unitholdings. |
The 2nd area of concern for the ATO is related to the investment by the SMSF in a unit trust, whether under a SMSF borrowing arrangement or not, and primarily involves dealings with related parties.
Investment by the SMSF using a related unit trust |
|
ATO concerns |
Explanation |
| Members invest with the SMSF in the unit trust, and use the unit trust property as security for their borrowings | The unit trust owned by the SMSF and related parties is not permitted to borrow and/or pledge its assets |
| The unit trust owns an asset, acquired from a related party, which is not business real property | Unit trusts owned by an SMSF are not permitted to own assets acquired from a related party of the SMSF, unless the asset is business real property (acquired at market value) |
The unit trust leases to a related party, an asset which is not business real property |
Unit trusts owned by an SMSF are permitted to lease property to a related party, so long as the property is business real property and it is leased at a commercial rental |
The clear message from the ATO Taxpayer Alert is to ensure that investments made by the trustees of SMSFs are properly structured and comply with the provisions of the SIS Act and Regulations.
The technical experts at Topdocs can assist you and your clients in deciding whether proposed investments will meet the legislative requirements, so as to avoid the situations the ATO has alluded to in its alert.
This article can be downloaded here
SMSFs and Insurance - change is on the way
06 December, 2012
Self insurance in general, and some specific types of external insurance such as trauma insurance, will be outlawed in SMSFs and most other super funds from 1 July 2013.
On 8 November 2012, the Government released exposure draft regulations under the heading ‘Stronger Super Regulations - Insurance & MySuper’, with a closing date for submissions on 21 November, only 13 days later. The exposure draft regulations, titled Superannuation Industry (Supervision) Amendment Regulation 2012¹, deal not only with insurance to be offered by MySuper funds, but also with most other regulated super funds.
Recent changes to the rules covering ownership of insurance within super funds include:
- changes to the extent of tax deductibility available in respect of premiums paid for some total and permanent disability (TPD) insurance - basically premiums for ‘own occupation’ cover²; and
- a requirement that the trustees of SMSFs regularly consider, when reviewing the fund investment strategies, whether insurance cover should be taken out for members of the SMSF.
Now, the Government has further changes in the pipeline, including:
- A ban on self-insurance by superannuation funds:
From 1 July 2013, most super funds will not be permitted to offer benefits for death, terminal illness, permanent incapacity or temporary incapacity cover unless the fund holds external insurance cover to meet the payment of those benefits³; and - A limit on the types of insurance cover the fund is permitted to hold:
Also from 1 July 2013, super funds will not be permitted to obtain external insurance cover unless it is the type of cover that, in the event of a claim, the benefit will be able to be paid to the member (or their dependants) under any of the four conditions of release mentioned above, being death, terminal illness, permanent incapacity or temporary incapacity⁴.
Although the impact of both changes on the operation of SMSFs will vary from fund to fund, the expectation is that the limit on the types of insurance cover permitted to be held will have a greater impact.
Whilst some SMSFs self insure member benefits, the complications brought about by the application of the contribution caps to amounts transferred from reserves effectively limits the viability for many SMSFs.
However, many fund members have cover in their SMSFs which, for various reasons, will not meet the new rules. For example:
- an individual aged 55 who is unable to obtain TPD cover, but could qualify for trauma insurance, is not concerned with the conditions of release as funds could be accessed under a transition to retirement income stream, until meeting a full condition of release; or
- the trustees of SMSF, having acquired an asset under a SMSF borrowing arrangement, desire to insure the member who is the main source of contributions to the fund, so as to ensure the fund can meet the loan repayment obligations in the event of death or incapacity. Own occupation disability cover provides more certainty from a claim basis, but there is no certainty the member would meet a condition of release, as the test for the permanent incapacity condition of release is the broader ‘any occupation’.
Although cover similar to that referred to above will be permitted to remain if held prior to 1 July 2013, the proposed Regulations will remove the ability of funds to take out similar cover in future.
Given the ‘grandfathering’ which is proposed to be allowed, trustees will need to maintain records of insurance, or self insurance, in existence at 30 June 2013, so as to satisfy future audit requirements.
Notes:
- As the release was in the form of an exposure (for comment) draft, the applicable number will be inserted when the draft is finalised. A copy of the Exposure Draft Regulations and Explanatory Memorandum can be accessed here.
- A detailed paper on the deductibility of TPD insurance premiums can be accessed here.
- A fund which is self insuring at 30 June 2013 may continue to self insure until 30 June 2016.
- The draft regulations provide a degree of ‘grandfathering’ of the rules. As currently written, they appear to be ambiguous. However, as a minimum, it appears that insurance cover in existence at 30 June 2013 will be permitted to remain. The ambiguity arises in regards to members of the fund prior to 1 July 2013 for whom the fund holds no cover, and whether the grandfathering provides the trustees with the ability to obtain a broader range of cover for those members in future (unlikely). We expect the wording will be clearer when the draft is finalised.
This article can be downloaded here
November Release Notes
30 November, 2012
We have made a lot of enhancements to the Topdocs Document Portal to make it even easier for you to order documents in the way that you want them. Plus we are now providing you with free technical & pro-forma documents and access to content rich technical Web Videos.
- Branding your online documents FREE
- BIG TIME SAVER! Integration with XPlan
- FREE technical articles and pro-forma documents
- New SMSF income stream web videos
- Investment Strategy integrated into SMSF Establishment order
- Additional white labeling facilities
- COMING IN JANUARY! Deed Update system
- COMING IN JANUARY! - Deed Update from Class Super data
- EASY deed conversions
Providing you with the most accurate and current documents is our first priority. Our in-house team of lawyers and document experts regularly review and update our documents – and outlined below are the documents we've updated recently.
- Investment strategy amendment relating to insurance
- Buy-Sell agreements
- Updated Discretionary Trust Deed
- Fixed Unit Trust changes
- Reworked Non-Fixed Unit Trust
- NEW Bamford amendments checklist
- Comprehensive trust amendments
Branding your online documents FREE
You can now promote your brand by putting your logo printed on any order, even instant email orders!
We have been branding full service documents for clients for quite some time. We have now developed a solution that enables your corporate logo to be automatically implemented in all of your orders – even instant email orders.
Adding your logo to your documents is free – and is a great way to promote your brand. Call us on 1300 659 242 if you require more information on how to implement this great feature.
BIG TIME SAVER! Integration with XPlan
Topdocs is now integrated with XPlan, enabling users to utilise client data held in XPlan to automatically pre-populate Topdocs online document order forms. This means easier document ordering, less data entry errors and improved efficiency.
Just imagine - you can now complete an SOA and then produce the relevant structure documents such as a SMSF establishment, SMSF pension establishment, SMSF borrowing and any corporate structure, all without having to rekey your clients details!
How does it work?
The integration is available through XPlan’s eApplications.
- Simply go to the relevant client, click on eApplications and then Topdocs.
- Select your structure, and then you will be prompted to logon to the Topdocs online portal (using your normal username & password or register if you are not a current user). The relevant order form will then open with your client information pre-populated.
There are no additional fees for this using this integration service.
FREE technical articles and pro-forma documents
Topdocs now provides a FREE range of technical articles, information documents and pro-forma documents in the Topdocs Document Portal. These documents relate to a wide range of topics including Companies, Estate Planning, SMSFs, SMSF Borrowing, SMSF Pensions, and Trusts.
To access our range of brochures, information sheets, case studies, rulings & releases, technical articles, FAQs, checklists and more, simply log into the Topdocs Document Portal and click on the Technical Articles tab.
New SMSF income stream web videos
Our latest series of SMSF income stream web videos will be available from December 10. These videos are professionally filmed and provide you with everything you need to know about SMSF Income Streams in two practical sessions.
Topdocs SMSF Income Stream Web Videos are viewable in our online Document Portal and have the following;
- Professionally filmed presentations of between 50-60 minutes
- CPD Accreditation from the FPA (1 point per Web Video) and SPAA (2.5 per Web Video)
- Comprehensive and detailed slides and reference notes on each topic
- Extensive reference articles and information sheets about the topic discussed.
Investment Strategy integrated into SMSF Establishment order
You can now purchase our investment strategy document at a reduced price when ordered as part of the SMSF establishment.
You can also order a Corporate Trustee establishment, ABN/TFN registration (with the ability to include the relevant tax agent number) and an investment strategy as part of your SMSF establishment order where required, all in a single order.
Additional white labeling facilities
Topdocs provides larger accounting groups, SMSF Administrators and Dealer Groups with the facility to establish their own document portal. We incorporate their corporate colours and logo so it appears as their very own. We have been busy making improvements to our white-labelling solution so it now includes an introductory video, more attractive home page, a full range of branding options in your corporate colours, technical articles section, and personalized support service email and phone number.
If you would like to know more about our white-labelling solutions, please contact the Toptocs team on 1300 659 242.
COMING IN JANUARY! Deed Update system
Our new, unique SMSF deed update and management system simplifies and automates ongoing SMSF deed amendments. Apart from being a great time saver, the Deed Update system provides you the peace of mind that your client’s super funds are being appropriately managed and kept up-to-date.
They key features and benefits of the Trust Deed update system include:
Overview
- Every SMSF that you establish or vary via the Topdocs Document Portal is listed in your SMSF Deed Updates page
- Whenever an SMSF is established or varied, you have the option to receive annual Deed updates for the Fund
- In the SMSF Updates page you can download the current Governing Rules and PDS for each of your Funds. You can also view the member, trustee and other Fund details
- Auditors can be granted access to your SMSF Updates page to view your Fund Details and download copies of the Governing Rules
- Each year you will automatically receive an email with an updated set of Governing Rules, a new PDS and a Trustee resolution
- You can select if you want to receive the annual updates email to you or you can have them automatically emailed or posted directly to your client
- If you don’t wish to receive updates annually, you also have the option to update your Deeds at any time on an ‘ad hoc’ basis with a click of a button!
Compliance Features
- Ensures each of your Super Funds is always up to date and compliant
- Ensures the Trustees are meeting their fiduciary requirements – and removes the risks of disgruntled beneficiaries – by being actively involved in the update process
- Provides a clear document trail for audit purposes including the provision to upload signed documents
- Provides a mechanism for auditors to view the details and documents for each of your Funds with a single login
- Provides a complete list of Funds sorted by manager, showing all current and prior sets of governing rules, and Fund details
Adviser Features
- Low annual pricing
- Provides a complete list of Funds sorted by manager, showing all current and prior sets of governing rules and the specific details of the Fund including trustee and member names
- Flexible delivery methods – annual updates can be delivered automatically via email or posted to either yourself or the directly to the client
- Easy opt out provisions if the Adviser wishes to leave the system
- Easy conversion processes available for large volumes of deeds or deeds on other updates services such as SuperCentral
- A template client letter can be provided for those clients transferring from another trust deed update system to Topdocs
COMING IN JANUARY! - Deed Update from Class Super data
It’s now super easy to update a SMSF deed where the Fund is on the Class Super administration platform. No order forms required!
The Topdocs Document Portal now includes an Upload facility for you to import client details from Class Super. Through this facility you can upload a client’s information (via a Class Super XML file) and the Fund’s current deed. You can upload a single client or up to10 at a time. This simple process means you can upgrade your clients’ Deeds on the Class Super system without completing any time-consuming order forms!
Once the trust deed is upgraded, our legal team reviews the deed for you as part of the service.
EASY deed conversions
You can now easily cnovert volumes of SMSF deeds where the Fund is currently on other annual deed update systems. The process is easy to follow and lets you convert Trust Deeds en masse quickly.
If you’re considering converting your clients’ Trust Deeds to Topdocs, call us on 1300 659 242 to discuss the special pricing we have on offer.
Investment strategy amendment relating to insurance
The Topdocs investment strategy document has been amended to include the requirement to note whether trustees of the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.
Buy-Sell agreements
Topdocs now supply Buy-Sell Agreements to suit a wide range of requirements. These are outlined below.
An agreement has been developed to facilitate various Exit Strategies for Business Owners. This is currently only available using our full service, with significant Topdocs Legal Pty Ltd lawyer involvement but we’re working on making it an automated solution.The Agreement incorporates:
- Depending on the constitutional documents currently in place and your needs it can cover:
- Insured Events,
- Insolvency Events
- other involuntary transfers (e.g. divorce settlements, uninsured trauma, court orders)
- voluntary transfers (early retirement and entry of third party transferees)
- transfers on breach of employment contract or partnership agreement
- Advice on the ownership of insurance policies can be provided and can include:
- Principal,
- SMSF
- Insurance Trust
- the Business
- Co-Owners
- Tenants-In-Common or Joint Tenants
- Tax advice can also be provided on the
- deductibility of premiums:
- tax exemption of insurance proceeds
- tax consequences of the transactions effected by settlement
- Other features of the Buy-Sell Agreement include:
- The choice on whether the transfer is to be:
- mandatory (condition precedent) or
- on exercise of an option (allowing flexibility for partners or partner’s families to remain in the business but extending the acceptance date)
- Valuations based on an agreed value, formula or appraisal and a process for re-valuations.
- Payment plan where funding shortfall due to:
- insurance policy not being in place,
- proceeds of a policy not being paid or
- proceeds of a policy not covering the full purchase price
- Proportioning of premiums on a collective policy where a Principal has:
- particular loadings or
- additional personal cover
- Clearly set out settlement procedure and accompanying schedule
- Progressive valuations and settlements where multiple insured events occur within a period
- Admission of additional parties
- Alternative dispute resolution via mediation
- Confidentiality of business information and restrictive covenants on exit
- Flexibility for the remaining partners to assign their purchase rights to the Business in order to instead carry out a redemption or buy-back.
- A more complete Business Succession Agreement can be tailored to vary any of the above features or deal with any of the following:
- internal debit and credit loan accounts with the Business
- secured external loans
- personal needs of a Principal
- succession risks on reduction in revenue and goodwill after the loss of a principal
- distribution of profits prior to settlement
- The choice on whether the transfer is to be:
Updated Discretionary Trust Deed
The Topdocs Discretionary Trust Deed has had a major overhaul by our legal team and now includes many new features. The enhanced features of the amended deed include:
- Settlor choice of proper law and ability to amend this,
- Trustee administration may be in a place outside of the proper law
- Ability to amend the vesting date to allow for changes to perpetuity laws;
- Nomination of additional beneficiaries and exclusion of existing beneficiaries
- Beneficiaries ability to disclaim interests
- Exclusion of trustee to cover stamp duty issues with land ownership in some states
- Clearer default trust provisions for income and capital
- Clearer distribution powers of a trustee in respect of the trusts
- A specific accounting provision dealing with
- the recording, taxation and allocation of the trust funds
- non-limiting streaming provisions post Bamford
- ability to make income determinations by the time required by law
- all other matters of an accounting nature for ease of reference by accountants and book keepers
- Appointor succession provisions clarifying
- acceptance of appointment
- mental impairment
- succession and survivorship between joint Appointors;
- bankruptcy issues on automatic vacation where no legal personal representative
- Incoming Trustee not restricted in the vesting of the trust fund if state requires registration;
- Alternative dispute resolution via mediation to avoid court ordered vesting;
- Wider disclosure and non-disclosure provisions to protect the integrity of the trust and the ability to provide information for various investments;
- Limited liabilities in all instances of delegation or nomination by the trustee;
- Indemnities for outgoing trustee for any liabilities on reassessments of tax and the ability to call for security against these;
- Clearer obligations for incoming trustees in relation to the trust accounts;
- Clearly stating that investment decision making skill is not required;
- Broader express trustee powers to clarify operation and administration of the trust;
- Definitions of spouse and children expanded for more complex family situations;
- Use of electronic technologies with email notifications
- Ability to make family trust elections (where bad debts, trust losses or more than $5,000 imputation credits are available) and addresses the tax liabilities that may arise on distributions outside the family group;
- Streaming of income and capital for minors with proceeds from deceased estates, superannuation funds and life insurance.
The deed already and still does deal with:
- Amounts set aside for corporate or trust beneficiaries to avoid division 7A problems;
- Conflicts of interest in a wide variety of instances to avoid the common law breaches;
- Current banking practices and in particular investments in derivatives and options;
- Decision making being in more than one place
- Bamford income streaming provisions
Fixed Unit Trust changes
The Topdocs Fixed Unit Trust Deed has been updated to cater for recent rulings from the NSW Office of State Revenue in relation to land tax on land held in NSW. The enhanced features of the amended deed include:
- After recent rulings by the NSW Office of State Revenue, the deed has undergone some changes to ensure it is approved as a fixed trust for the purposes of the Land Tax Management Act and therefore will allow unit holders to gain access to the individual thresholds when being assessed for land tax on land held in NSW. The amended deed has subsequently been approved by the NSW Office of State Revenue.
- Provides the unit holders with additional powers to direct a trustee to;
- accept a redemption of units and
- appoint a vesting date
- More specifically allows for an in specie distribution on request of a unit holder (subject to the approval of all other unit holders)
Reworked Non-Fixed Unit Trust
The Topdocs Non-Fixed Unit Trust Deed has had a major overhaul by our legal team. This improved document now provides everything you could need in a Non-Fixed Unit Trust. The enhanced features of the amended deed include:
- the same updates as contained within the discretionary deed such as
- Choice of proper law and ability to amend this,
- Trustee administration may be in a place outside of the proper law
- Specific accounting provisions including streaming for ease of reference by accountants and book keepers
- Clarifying mental impairment and bankruptcy issues on vacation of office of trustee
- Headings throughout to better navigate through the document
- Simplified transfer provisions
- On request, the ability to select special, ordinary or unanimous resolution for specified events
NEW Bamford amendments checklist
Our comprehensive checklist will help you decide if your Discretionary or Unit Trust Deeds need amending according to the Bamford provisions.
This checklist sets out the key clauses that need to be considered when streaming income to allow the flow through of franking credits on dividend income to beneficiaries as well as access by beneficiaries to the tax concessions available on capital gains.
You can view or download our Bamford amendments checklist here
Comprehensive trust amendments
It’s not only about income streaming! There are many other key aspects of Trust structures that, without properly drafting provisions, can limit the tax effectiveness of the Trust.
The Bamford principals aren’t the only provisions that you may find outdated in your client deeds. There are many other key aspects of Trust structures that, without properly drafting provisions, can limit the tax effectiveness of the Trust. For example, how does the deed deal with the bankruptcy, mental impairment or death of Appointors? Does it have adequate trust loss and imputation credit provisions? Will there be potential stamp duty issues if the trustee of the Trust is changed in the future?
Our team at Topdocs Legal can do a thorough review of your Trust Deeds and provide a comprehensive deed update that includes not only the Bamford principles, but brings the Trust Deed completely up to date with a wide range of other important provisions.
This checklist sets out the key types of clauses we look for in updating deeds in order to effectively allow clients to protect and plan within their trust deed.
You can view or download the Deed update matters to consider here
Super Fund Borrowing Webinars – July 13th and July 21st
June, 2011
Topdocs is presenting a comprehensive and practical webinar on Super Fund Borrowing on July 13 and July 21 2011. This one hour webinar will arm you with the knowledge and tools required to ensure your clients receive the maximum benefit from this investment strategy.
Topdocs real time Company Registration
January, 2011
ASIC has approved Topdocs company registration software for instant company registration. This means that you can register companies online and receive fully tailored company registration documentation (including all relevant constitutions, consents, minutes, applications and certificates) within minutes. This compliments our range of instant download SMSF and Corporate documents and also our integration with SMSF Administration, Tax, Financial Planning and Scanning software.
RewardSuper & Topdocs to integrate software
16 December, 2010
Users of Reward Super’s RSDataWeb will soon be able to automatically and securely generate Topdocs Companies, SMSFs, Trusts, Deeds, Pensions, etc online from inside RSDataWeb. The software integration between Topdocs and RSDataWeb will pre- fill orders or provide automatic full flow through of documents based on data contained via RSDataWeb.
Click here to view the Topdocs and Reward Super document integration video
Paperbuster and Topdocs to integrate software
October, 2010
Users of ASIC Paperbuster will soon be able to automatically and securely generate Topdocs Companies, SMSFs and Trusts online from Paperbuster. The software integration between Topdocs and Paperbuster will pre- fill online orders based on data supplied by Paperbuster.
Topdocs, DKN / Londale and Class Super integrate software
October, 2010
Topdocs, in association with Lonsdale Financial Group Ltd and DKN Limited is integrating its document automation system with SMSF Administration platform Class Super to automatically produce SMSF documentation, companies, instant SMSF pensions, trusts and other documents.
Topdocs instant download SMSF Pensions
July, 2010
Topdocs has developed Australia’s only fully tailored complete, compliant and cost effective pension documentation that can be prepared online in around 5 minutes and be instantly downloaded. These are not pension kits but fully completed documents. Topdocs Prepares a complete range of SMSF Pension documentation, including:
- Account Based Pensions and Account Based Pension Resets
- Transition to Retirement Income Streams and Resets
- Allocated Pension and TRIS Allocated Pension Conversions to Account Based Pensions
- Defined Benefit Pension Conversions
BGL, OneVue and Topdocs integrate software for end to end SMSF and document solution
May 2010
Market leading SMSF Administration software provider BGL and leading UMA and SMA provider OneVue have developed the BGL Portal and OneStep SMSF integrated solutions for Financial Planners. As part of this solution they utilise the high quality integrated Topdocs SMSF and corporate documentation.