Granny Flats: The Hidden Legal Risks
Receive a rundown of the many hidden legal risks that often go unnoticed or unappreciated when dealing with granny flats. Learn how to spot these issues and deal with the outcome when things go wrong and disputes arise. Those working in estate planning, elder law, property, family law or financial planning will master how to investigate the risks tied to granny flats, how to avoid them, and how to deal with any family dispute, tax trouble, or Centrelink conundrums that arise. WEB2112N04
Description
Attend and earn 3 CPD units including:
1.5 units in Substantive Law
1.5 units in Professional Skills
This program is applicable to practitioners from all States & Territories
Chair: Irene Ryan, Barrister, Frederick Jordan Chambers
2.00pm to 2.05pm Opening Comments by the Chair
2.05pm to 3.20pm Granny Flats and the Legal Perspective: The Enticing Attraction and the Perilous Risks
- Overview of the common legal arrangements for granny flats
- Interconnected areas of law with granny flat arrangements
- Property equity; succession; social security; taxation
- Navigating the key legal issues and considerations related to granny flats
- Revenue considerations
- Contractual duties; fiduciary duties
- Unconscionable conduct; undue influence
- Ownership & financial contributions of co-owners
- Resulting & constructive trust issues
- Common remedies
- How to draft an agreement to clarify granny flat issues to prevent problems
- Essential instructions for a granny flat arrangement
- Case studies, examples and the real-world practicalities of how problems and disputes involving granny flats can play out in practice
- Attraction of parents sinking money into a child’s home so they can live and care for each other
- How the term ‘granny flat’ can mean different things for clients, builders, local councils, the ATO and Centrelink
- Parents in a perilous position when they put money into a granny flat but are not on the legal title and where things can go wrong
Presented by Richard McCullagh, Author, Australian Elder Law, Thomson Reuters & Retirement Village Law in NSW, Thomson Reuters; Recommended Health & Aged Care Lawyer, Doyle’s Guide 2020
Professional Skills
3.20pm to 4.10pm Granny Flats: Social Security Considerations and Opportunities
- Defining and establishing a granny flat interest
- Determining the value and when the reasonableness test can apply
- Homeowner or non-homeowner and what is assessed for age pension
- Gifting considerations when moving to aged care
Presented by Andrew Biviano, Head of Lifestyle and Care, Alteris Financial Group
4.10pm to 4.20pm Break
Professional Skills
4.20pm to 5.10pm Granny Flats: The Tax and Accounting Perspective
- The tax implications of the rent of a principal place of residence with a granny flat on the property
- Permanent market rental, Airbnb market rental, investment property without granny flat vs with, a non-commercial rental and the ramifications that go with it
- GST issues: subdivision, claiming a credit on the construction, and GST on sale of the property
- CGT considerations: CGT discount requirements
- Income tax issues and rates
- Where to start?
Presented by David Shaw, CEO, WSC Group
5.10pm to 5.15pm Final Q&A and Closing Comments by the Chair
Presenters
Irene Ryan
A long-standing member of Frederick Jordan Chambers, Irene brings over 30 years’ experience as a barrister when advising and appearing for clients in common law, personal injury, medical negligence, child welfare and succession, and family provision matters. During the course of her legal career, Irene has been briefed in several significant matters in her fields of practice. As a highly-experienced advocate, she appears primarily in the Supreme Court of New South Wales and District Court of New South Wales. Her multi-disciplinary skill-set allows her to deliver legal advice that is effective and highly valued by her clients, when representing them in court or at mediations.
Richard McCullagh
Richard McCullagh has practised law since 1985, mostly in the area of retirement village law in several jurisdictions, previously been an adjunct lecturer in Elder Law at the College of Law in Sydney and currently at the University of Western Sydney. This covers areas such decision-making agency, accommodation and remedies for elders on a national basis. He regularly presents seminars, and publishes articles in the Law Society Journal, about developments in elder law. His first textbook, "Retirement Village Law in NSW" was published by Thomson Reuters in 2013, and his latest, "Australian Elder Law"' in 2018. Richard works on the Central Coast, in close proximity to a multitude of aged care facilities, retirement villages and an elderly clientele.
Andrew Biviano
Andrew’s team is focused on ensuring clients and their families receive the support they need to make confident decisions about their aged care and retirement living options. Andrew enjoys the opportunity to see the positive benefits that a high standard of financial advice provides clients both now and in the future. Holding a Bachelor of Mathematics and a Graduate Diploma of Financial Planning, Andrew has many years’ experience in the financial planning industry. Andrew holds a Professional Certificate in Self-Managed Superannuation Funds, is a member of the Financial Planning Association and the Financial Services Institute of Australasia.
David Shaw
David Shaw is the CEO of WSC Group and has many years of accounting experience with extensive knowledge in commerce, industry and public practice accounting. During his accounting career, he has held senior accounting roles with Deloittes, Pacific Dunlop, Boral and National Foods. Prior to starting the WSC Group, over 10 years ago, David was a Director and CEO of the Pickles Auctions Group. Specialising in establishing financial systems and management controls, David offers his clients strategic planning and growth assistance. David has also developed an extensive property expertise from the property investor level to the corporate property development of both new developments and second-hand property refurbishments. David has a degree in Business (Accounting Major with the University of Technology Sydney), is a CPA with a Public Practice Certificate and a Registered Tax Agent.