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Trusts, Timing, and Getting It Right

May 2017

Trustees (or directors of a trustee company) need to decide on the distributions they plan to make by 30 June 2017 at the latest. 

Trustees (or directors of a trustee company) need to decide on the distributions they plan to make by 30 June 2017 at the latest. 

Most trust deeds require resolutions to distribute trust income to be made by 30 June each year, so it's important to check your trust deed.  Decisions made by the trustees should be documented in writing by 30 June 2017.

If valid resolutions are not in place by 30 June 2017, there is a risk 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).

It's not essential for distributions to be paid by 30 June, but the trustees need to decide on the distributions that need to be made.

Contact us on 9957 4033 for more information or assistance.

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Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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