Thanks, But No Thanks - The Tax Implications of Disclaiming Trust Income

The recent High Court decision in the Commissioner of Taxation v Carter [2022] HCA 10 has determined who is responsible for tax on a legally effective disclaimer of trust income and the result may surprise you. This session reviews the Carter Case as well as other issues to do with disclaiming the right to trust income, including:

• Situations where beneficiaries disclaim their interest in trust income
• A review of the Carter case and the key takeaway points
• What if a beneficiary is not aware of their original entitlement?
• What additional steps can be taken prior to finalising annual trustee income distribution resolutions to minimise adverse outcomes?
• Tips for tax effectively disclaiming an interest in trust income
• Can default beneficiaries effectively disclaim their entitlement on a year-by-year basis?
• The potential tax implications of having a default beneficiary clause versus not having the clause
• Case studies