Question
Dylan (57) and Megan (56) are considering retiring in the next few years. They have some questions for you since you are their adviser. They
Dylan (57) and Megan (56) are considering retiring in the next few years. They have some questions for you since you are their adviser.
They own their own home outright and have two children, Rob (19) and Con (23). Rob is a full-time university student, and Con works in a bank.
Dylan is employed as a surveyor and earns a salary of $100,000p.a. + 9.5% Superannuation guarantee charge. He has $700,000 in his superannuation account, with $200,000 in the Tax-Free component and $500,000 in the Taxable component. Dylans superannuation account has a binding death nomination, split 50% to Megan, and 25% each to Rob and Con.
Megan is a self-employed freelance journalist and earns $35,000 p.a.
She has not made any contributions to her superannuation account since starting her business 5 years ago. From her previous employment, she has a superannuation account which has $200,000 in it, made up of $160,000 Taxable (Taxed) and $40,000 Tax-Free components. Megan has not nominated any beneficiaries in respect of her superannuation account.
QUESTION 5 Unfortunately, Dylan has passed away. Dylans death benefit is to be paid 50% to Megan, and 25% each to Rob and Con. REQUIRED:
(a) In this situation, what is the responsibility of the trustee? What is the familys financial entitlement in respect of Dylans superannuation fund?
(b) Calculate the tax payable in respect of the Death Benefit Payments made to Megan, Rob and Con in the case of a Lump Sum payment. Ignore any Medicare levy. Show your calculations.
(c) Calculate the benefit to Dylans estate if he had implemented a re-contribution strategy. Ignore any Medicare levy. Show your calculations.
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