Some interesting changes to super splitting.
To implement a split for the huge majority of funds and especially Self Managed Funds, you need:
1 An agreement under Section 90XJ with the Base Amount and where to pay;
2 A separation declaration by one or both parties;
3 Certificate of independent legal advice for each party.
Having complied, The Trustee MUST make the payment.
So far – no change. What has changed is the content of the Separation Declaration. There is no 12 months separation requirement. That means no need to delay with funds over the tax free threshold. So the occasional adjournment caused by forgetting procedural fairness is a thing of the past. Do a specific purpose Section 90XH (90XHA for defacto) Super Splitting Agreement.
I am of the view that all splits should be by a BFA. After all, it is an ATO Compliance document. No need to put your clients full property and parenting orders on the accountant’s file. The accountant can comply with SIS regulations even without the wife signing.
Most Trust deeds have a power of attorney clause to enable this. No need to put that in the BFA.
All covered.
A specific purpose Section 90XH (90XHA for defacto) Super Splitting Agreement is included in the Family Law Practice Manual available through Practice Guides.
Available in Family Law Practice Manual…
PETER SZABO – FAMILY LAW PRACTICE MANUAL