In possibly the most significant trust tax case since Bamford (2010), the High Court has held that the attempt to undo, by means of an “after the event” disclaimer, the tax consequences of a default distribution clause of a discretionary trust was ineffective for taxation purposes.
discretionary trust
Does a discretionary trust protect beneficiaries? Part 1
Dominique Perry from Townsends Lawyers has produced a two-part overview looking at whether a discretionary trust protects beneficiaries. This is the first in the series.
Deadline approaching to review discretionary trusts
An important reminder that discretionary trusts that have already sold all residential properties before the deadline of 31 December 2020 could still be assessed for foreign surcharge purposes under the new NSW laws even if the trusts have already been wound up.
Borrowing strategy banned from testamentary trust concessions
Recently the government passed new laws which limit the treatment of income from a testamentary trust paid to minor beneficiaries of the trust as “excepted trust income” only to property transferred to the testamentary trust from the deceased’s estate or from property that represents an accumulation of income from property from the deceased’s estate.
Always exercise caution when changing family trusts
Trustees should be cautious when making any significant change to their family trust deed.
Giving a director the boot
When relationships between directors of private companies who are family members or business partners break down, how easy is it to get rid of them?
Private trusts can benefit from investment bonds
Many ‘private trusts’ run corporate beneficiary structures (sometimes called a ‘bucket company’) to receive income distributions for investment assets that if retained within a family trust or distributed to high-income adults or children, would otherwise attract tax at the top marginal tax rate (MTR). An issue with making distributions and creating assets in a private […]
Changes to requirements on trust property transfers
Fred and Wilma are the trustees of the Flintstone Unit Trust which own a commercial premises in NSW and supplies building materials to its clients. Fred and Wilma decide to retire and wish to sell their business to a third party.