- Adrian De Vito - CPA
Family Trust What to do before 30 June 2019
Trustees (or directors of a trustee company) need to consider and decide on the distributions they plan to make by 30 June 2019 at the latest (the trust deed may actually require this to be done earlier). Decisions made by the trustees should be documented in writing by 30 June 2019.
If valid resolutions are not in place by 30 June 2019, the risk is that the taxable income of the trust will be assessed in the hands of a default beneficiary (if the trust deed provides for this) or the trustee (in which case the highest marginal rate of tax would normally apply).
Over the last couple of weeks our team have been going through our clients trust deeds to review if they are up to date with current provisions along with creating distribution minutes based on our opinion for the trustee to consider.
These will be sent out next week for you to review, update where required, sign & keep in a safe place prior to 30 June 2019. If trustee believes that this is not the way they would like to distribute simply cross out the allocations, alter & initial the minute to suit.
If you have any queries please contact myself or a member of the Clear Accounting Solutions team
Adrian De Vito - CPA