This service requires legal advice and tailoring. Quoted fees for client acceptance will vary based on the complexity of the advice and/or documentation required.
The making of a valid and effective trust distribution is no simple task because every trust deed is different, and the trust distribution resolution must be tailored to the specific trust deed.
A generic trust distribution resolution may potentially give rise to adverse taxation consequences for both the trustee and the beneficiaries (as well as their advisors) especially if any issues are not identified until years later during a tax audit of the trust.
Most trust deeds permit the trustee a range of alternatives regarding the net trust income earned each financial year. Commonly the trustee may choose to distribute some or all of the income to the trust's beneficiaries, or to accumulate some or all of the income into the total trust fund. These decisions can attract material tax consequences and must be compliant with the relevant legislation and the governing rules of the trust.
An effective trust distribution for any particular trust requires the following:
- a review of the trust deed - including all amendments made since it was established
- an understanding of the key clauses of the trust deed
- the definitions of trust income and taxable income under the trust
- establishing who are the income and capital beneficiaries of the trust, and any applicable conditions or restrictions
- vesting date of the trust
- understanding the distribution objectives including whether any particular types of income are to be streamed to particular categories of beneficiaries
We provide a full service review and prepare trust distribution minutes that comply with the terms of the trust. This service covers all types of trusts - discretionary, fixed or non-fixed unit trusts, hybrid trusts etc.
For more information, please fill out our no obligation enquiry tab and we will be pleased to contact you shortly, or call 02 8296 6266 for immediate assistance.