We know that getting your trust distribution minutes right can be a headache.
To help, we have compiled a series of useful articles and links below that will help you optimise your trust distribution minutes and assist you in getting them right the first time, every time.
If you have a discretionary family trust, then chances are your accountant has mentioned ‘unpaid present entitlements’ or ‘UPEs’. No doubt you have just nodded wisely, but deep down, do you really know what this means?
People who say this are just demonstrating their ignorance. Here’s why. The ability to use a trust as a ‘tax loophole’ was pretty much closed out in the 1970-80s. To suggest that trusts somehow make tax disappear for the ‘wealthy’ is plain silly.
The concept of a ‘bucket company’ is used to describe a company into which distributions from a discretionary trust are made to cap the tax rate on the trust’s income to the flat company rate of 30%.
The short answer is that it depends on whether the trustee first falls within the class of potential beneficiaries, and then whether the trustee is specifically excluded from benefiting.
You can no longer put off giving your Trust Deed a proper tune-up. There are at least four key reasons why you simply must have your Trust Deed reviewed and updated – and brought up to a modern standard.