Questions Ostate planning Total marks - 16 marks Ben is 29 years of age. He has total accumulated superannuation balance of $150,000. As a member of the fund, he is automatically eligible for $100,000 standard group term life insurance, available to all employees. Ben owns no other assets. He has recently married Emma, but they do not have any children yet. a. Does Ben need a will? Explain your response (2 marks) b. What total amount would be paid out from Ben's superannuation fund in the event of his death? (1 mark) c. Who are the possible beneficiaries of Ben's superannuation fund and would they likely be classed as dependants or non-dependants for superannuation purposes? (2% marks) d. What will the superannuation fund trustee do if Ben does not nominate any death benefit beneficiary(is) in the event of his death? (2% marks) e. Is the trustee bound if Ben completes a non-binding nomination? (2marks) f. How would Ben's estate be distributed if he has no will in place? (2% marks) g. Assume it is three years on and Ben now has a two-year-old daughter, Tiffany Explain to Ben what a testamentary trust is and the reasons why he may wish to consider establishing one. (3 marks) Q5 Type your answer here Sourced from www.ato.gov.au Resident individuals -income tax rates 2020-22 to 2021-22 $18,201 - $37,000 19c for each $1 over $18,200 $37,001 - $90,000 $3,572 plus 32.5c for each $1 over $37,000 $90,001 - $180,000 $20,797 plus 37c for each $1 over $90,000 $180,001 and over $54,097 plus 45c for each $1 over $180,000 The above rates do not include the Medicare levy of 2% Non-resident individuals - income tax rates 2020-22 to 2021-22 Taxable income Tax on this income $0 - $90,000 32.5c $90,001 - $180,000 $29,250 plus 37c for each $1 over $90,000 $180,000 and over $62,550 plus 45c for each $1 over $180,000 Medicare levy thresholds The full Medicare levy is 2.0% of taxable income. A reduced Medicare levy applies where taxable income is below the thresholds in the table below: Income category No levy puyable taxable income is Reduced levy payable fable into below is below: Taxpayers not entitled to senior and pensioners tax offset (SAPTO) Individual $22,801 $28,502 Married or sole parer $38,474* $48,092** *For each dependent child or student, add $3,533 **For each dependent child or student, add $4,416 Medicare levy surcharge (MLS) Individuals and families on incomes above the MLS thresholds are liable to pay the MLS for any period during 2018-19 that they, or their dependents, did not have private patient hospital cover. 2018-19 Basetler Tler 1 Ther 2 Tler 3 Singles $90,000 or less $90,001 - $105,000 $105,001 - $140,000 $140,001 or more 1.5% Families $180,000 or less $180,001 - $210,00$210,001 - $280,000 $280,001 or more Rates 0.0% 1.0% 1.25% If there is more than one dependent child, these thresholds are increased by $1,500 for each child after the first. The single threshold is indexed to average weekly ordinary times earnings and increased in $1,000 increments (rounded down). The family thresholds are double the relevant singles threshold. Indexation of the income tier thresholds in the table above has been paused until 1 July 2021. Taxation of resident minors Income sources Income threshold Tax payable (excludes Medicare le $0-$416 Nil $417 - $1.307 66% of excess over $416 S. 1308 45% of entire tearned income Income from a business, employment or deceased estate Nonnal adult marginal rates
