TRUST DISTRIBUTIONS TO BE DETERMINED BY 30 JUNE!

Did you know that your Family Trust is required to prepare a Trust Distribution Minute for the year ended 30 June 2019 BEFORE the end of the Financial Year?  If you don’t there is a danger that you will pay a lot of extra tax!

A Trust Distribution Minute determines the allocation of the Trust’s net income to its beneficiaries for the relevant financial year and decisions on distributions must be made by 30 June.

The consequences for not doing so, is that the default beneficiary stated in the Trust Deed will be assessed on the total income of the Trust.  If no default beneficiary is listed in the Deed, the trustee is assessed at the highest marginal tax rate plus the Medicare Levy.

We have prepared Trust Distribution Minutes for the year ended 30 June 2019 for our clients.  Upon receipt from our office, you should immediately sign and date them and return them to our office.

If you have any queries, please contact our office.