Old Wills Could Face New 30 Percent Trust Tax, Estate Lawyers Warn
More than a million existing wills may need reviewing under the proposed tax changes, the Society of Trust and Estate Practitioners warns.
TL;DR
- Australia's proposed tax on family trusts could impact wills signed decades ago.
- The Society of Trust and Estate Practitioners (STEP) Australia estimates over a million wills may need to be checked.
- Some existing wills may become impossible to amend due to the new tax law.
- From July 1, 2028, discretionary trusts will be required to pay a minimum 30 percent tax on taxable income, subject to exemptions.
- Discretionary trusts allow trustees to decide income distribution among beneficiaries, typically family members.