- Income stream payable from one party to another for certainty of income
- It may have monthly, quarterly or annual payments
- May include a residual payment of capital say 50% of the purchase price of the annuity which will adjust monthly payments
- Provides certainty of income payments for annuitant
- Can be secured by a mortgage over the annuity provider’s property
- Not for insurance companies but is a private income stream
Frequently Asked Legal Questions
All master documents have been signed off by Abbott & Mourly lawyers. Tony Anamourlis of Abbott & Mourly advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LightYear Docs platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LightYear Docs platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”
However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by Abbott & Mourly.
The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria  VLR 394, 397 where the Court held:
“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”
Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.
Is the document easy to read?
All LightYear Docs products are written in plain English and assessed for readability. If at any time you come across any errors, please contact email@example.com.
Can I get a sample of this document?
Yes, please email firstname.lastname@example.org to request a sample document for you to review.
Who prepares the LightYear Docs Annuity Contract?
This has been prepared by Abbott & Mourly and abides with the Commissioners guidelines in relation to annuities.
Who can be the Provider and the Annuitant?
The provider can be any party except an insurance company. This may be a related trust, company, partnership and individual and is good for private and commercial arrangements.
What is the interest rate?
The rate for the contract is embedded into the payments and you can determine using the following annuity calculator: https://www.vertex42.com/Calculators/annuity-calculator.html
What happens on the death of Annuitant?
The Executor or Administrator of the Estate may continue the income stream or terminate the payment early.
Is there training on the LightYear Docs Loan Suite?
The LightYear Docs Loan Suite is unmatched amongst any other document provider and full training on the annuity can be found here: https://lightyeardocs.zendesk.com/hc/en-us/articles/360055558954
What is the taxation for both parties?
The Annuity is a security for taxation purposes and is taxed under Division 16E of the Income Tax Assessment Act 1936. In short the “rule of 78” whereby the first payments are mainly interest reducing to primarily capital in the final payments apply. For the provider this results in a deduction and for the annuitant an amount of assessable income.
What lawyers sign off on the LightYear Docs Annuity Contract?
All LightYear documents are prepared and signed off by Abbott & Mourly from Melbourne, Sydney and Brisbane.
Is the LightYear Docs Annuity Contract reviewed regularly?
All LightYear Docs documents form part of the LightYear Docs internal document review cycle. All documents are scheduled to be reviewed at least annually or when required to do so, due to changes in legislation. The LightYear Docs review cycle ensures all of our documents remain current and accurate.
Can this document be digitally signed?
YES. In line with current legislation, our legal partner Abbott & Mourly have advised that digital signatures are legally binding on this document. (Note: Integration with HelloSign coming soon to Lightyear Docs). You can read more about digital signatures on the strategy centre by searching "digital signatures".
What happens after I purchase this document?
After you purchase this document, you will experience first-hand the power of our assembly engine, HotDocs. An interview session will appear in what is called the HotDocs iFrame. Through the use of the iFrame technology, we are able to create document templates in minutes, versus months of coding through other methods. The iFrame also allows for rapid integrations and documentation to be assembled instantly in "lines" or packs of documents.
Can I edit my document after it has been completed?
Your document will be available to edit from the LightYear Vault for 90 DAYS after you have completed the interview process, at which point it will be locked for future edits. Your completed documents will be listed under "My Vault" from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to make edits within the first 90 DAYS.
Can I save a document to complete later?
Yes, provided you select save, you can exit the interview process at any time. All documents that have been purchased and not yet assembled will be saved under "My In Progress Docs" and are accessible from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to continue the interview process and assemble your document.