FNSTPB503 Apply legal principles in contract and consumer law - Assessment 2

Task 1 Research Assessment
Trusts and Superannuation

What you have to do:
1. You must read the information in the research question carefully.
2. You should visit the following links for useful information:
Australian Taxation Office Super https://www.ato.gov.au/super/
Self-managed-super-funds ATO (Accessed 6 September 2018)
3. Research the topic and relevant statute and case law.
4. Collect, collate and present the client's relevant personal and business information from the details below for your evaluation and analysis.
5. Identify and describe any additional information you would seek.
6. Describe any specialist advice you may seek to best advise the client.
7. Interpret, analyse and process the available information to obtain required knowledge on client's business structure requirements.

8. Analyse how legal issues and risks impact on the range of different types of legal entities that may be relevant to your client’s needs, in particular:

1. the legal nature of a trust and its advantages and disadvantages;
2. the basic characteristics of different types of trust including bare, fixed discretionary or testamentary trusts;
3. special disability trusts;
4. the ways in which superannuation can be accumulated including self-managed superannuation;
5. advantages and disadvantages of superannuation and different types of superannuation funds;
6. how superannuation interests are protected.

9. Review your client’s circumstances and provide a relevant, correct and coherent advice to the client/s, identifying any type of trust or special trust/s that may be suitable for them and/or form of superannuation that may best suit their personal circumstances.

10. Detailed financial or tax calculations are not required although some general understanding of income tax thresholds and rates of income tax may be relevant in providing correct advice.
11. Correctly cite relevant legislation and decided cases if relevant.
12. Provide a compulsory and satisfactory bibliography displaying evidence of research of up-to-date relevant statute law or cases or textbooks or articles using either the Harvard Referencing Style or the APA Referencing Style as outlined on the OLS website.
13. Provide a written advice of no more than 1500 words excluding the required bibliography.
14. The advice does not have to be addressed but is obviously aimed at fulfilling your clients’ needs.

Advise Andrew and Patricia in relation to trusts and superannuation based on the following information:
These clients are well informed and are seeking rational outline of advice relating to:

1. the nature of a trust and its advantages and disadvantages.
2. the basic characteristics of three different types of trust.
3. any special trust/s that may suit their personal circumstances.
4. types of superannuation fund and their advantages and disadvantages.
5. the best way for them to accumulate superannuation in their circumstances.
6. legal protections for superannuation in Australia.

Andrew is 45 and his wife Patricia Reeves is 34. They approach you (as their accountant) to recommend investment structures for their retirement and specifically for their children.