Trustee responsibilities
Trustees are required to have made a determination or trustee resolution as to the definition of income, any streaming of that income and the allocation of income to beneficiaries of the trust by 30 June or the year to which the resolution applies.
This means that a review of the income of the trust and the above resolution will need to be done prior to the end of June, otherwise the trust risks all its income for the year being taxed in the hands of the trustees at the top marginal rate.
To ensure your trust has made the resolution by this date, we recommend providing us with current year data no later than 31 May 2017 to ensure an assessment of current year income can be completed for your trust and potential beneficiaries.
This will allow you as a trustee to make a considered decision when finalising the trustee resolution as to what the various financial impacts will be on potential beneficiaries and the most financially efficient allocation to be adopted.
We appreciate this requirement may cause additional pressure to trustees, but a planned and methodical approach will ensure the best outcome for the trust, trustees and beneficiaries. Please contact Carrick Aland on 07 4669 9800 for further clarification or to organise planning for your trust before 30 June.
