Week 10 - Estate Planning Flashcards
1
Q
What is the definition of a “tax-dependant”
A
- current or former partner
- interdependent relationship
- Child under 18
2
Q
What tax is paid on a lump sum death benefit ?
A
Tax dependant
0%
non-Tax dependant
taxable component = 17% or marginal tax rate + medicare levy
3
Q
Who can get income stream death benefits?
A
only tax dependants
- Adult children can only qualify if under 25 and financially dependant on deceased
