Does Ben need a will? Explain your response What total amount would be paid out from Ben's superannuation fund in the event of his death? Who are the possible beneficiaries of Ben's superannuation fund and would they likely be classed as dependants or non-dependants for superannuation purposes? :11
Does Ben need a will? Explain your response What total amount would be paid out from Ben's superannuation fund in the event of his death? Who are the possible beneficiaries of Ben's superannuation fund and would they likely be classed as dependants or non-dependants for superannuation purposes? :11
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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
Transcribed Image Text:Question 5- Estate planning
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
b. What total amount would be paid out from Ben's superannuation fund in the event of
his death?
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?.
d. What will the superannuation fund trustee do if Ben does not nominate any death
benefit beneficiary(is) in the event of his death2
e. Is the trustee bound if Ben completes a non-binding nomination?
f. How would Ben's estate be distributed if he has no will in place?
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.

Transcribed Image Text:Resident individuals - income tax rates 2020-22 to 2021-22
Taxable Income
Tax on this Income
$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%
net
Non-resident individuals - income tax rates 2020-22 to 2021-22
Tax on this Income
Taxable income
$0 - 590,000
32.5c
$90.001 - $180.000
$29.250 plus 37c for each $i 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 payable If taxable income is
s or
Reduced levy payable f taxable ino
is below:
below
Taxpayers not entitled to senior and pensioners tax offset (SAPTO)
Individual
$22,801
$28,502
Married or sole pare $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
Base tier
Tier 1
ler 2
Ther 3
Singles
$90.000 or less
$90,001 - $105.000 105.001 - $140,000
3140.001 or more
Families
$180,000 or less
$180,001 - $210.00210,001-$280,000
S280,001 or more
25%
5%
Rates
1.0%
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.
Taxatlon of resident minors
Income sources
Income thresbold
Tax payable (escledes Medicare lev
s0 - 5416
Nil
$417-S1.307
66 of excess over 5416
S.1308
45% of eutire nened income
Income from a bosiness, employment or decesed estate
Nomal adult marginal ates
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