Recorded Webinar: Trust Income Distributions and the Role of the Deed: Getting It Right

There’s a lot to consider these days when it comes to distributing the net income of a trust and there is no shortage of ATO guidance material on the tax consequences that can arise from those distributions. However, is the relevant trust deed in each case also being given the required attention to ensure the distribution is valid? This session explores the topic, including:

• How the contents of a trustee company's constitution interacts with a trust's distribution requirements
• How the distribution of trust income is impacted by:
  • the various income definitions that can be used in a deed
  • whether a deed includes “streaming” clauses and how expenses are treated that relate to the streamed income
  • franking credits
• Determining if the beneficiaries being allocated income or capital are eligible both:
  • under the deed, including when there are foreign beneficiary exclusions for state and territory tax and duty purposes, and
  • if a family trust election or interposed entity election is in place
• Tips on preparing distributions that involve non-assessable capital gains based on differing trustee clauses
• Acceptable documentation that supports the timing, content, and decision-making process for a trust distribution
• How deeds differ with the documenting of distributions and the Corporations Law requirements for completing, filing and retaining
• Consequences of an invalid distribution of trust income
• Practical examples of trust distributions based on various differing trust deed clauses