What happens to the balance of the ARF tax wise when I die assuming I outlive my spouse?

[asdfg]

What happens to the balance of the arf tax wise when I die assuming I outlive my spouse

 

[Gordon Gekko]

What happens to the balance of the arf tax wise when I die assuming I outlive my spouse

Assuming that you’re leaving it to your spouse, it simply becomes his/her ARF and they effectively “step into your shoes”.

 

[Conan]

If you outlive your spouse and the remaining ARF value on your death goes to children over age 21, then the value is taxed at 30%.

 

[asdfg]

Is the value of the afr after tax added to your estate and taxed again for cat

 

[Gordon Gekko]

Is the value of the afr after tax added to your estate and taxed again for cat

It depends…

If going to a spouse, it just moves to him/her.

If it’s going to adult children (i.e. 21+), it’s taxed separately at a special rate of 30% and doesn’t count against thresholds.

If it’s going to a child under 21, it’s subject to CAT at 33% and impacts on thresholds.

If it’s going to anyone else, it’s taxed as if it was distributed to the deceased ARF-holder (so income tax, USC, etc) and then the net proceeds are subject to CAT at 33% and thresholds etc.