Trust Distribution Minutes Library for 2017/18 - Single-Use

What are Distribution Minutes?

Before the end of each financial year you have to decide who gets what income from your Family Trust or Testamentary Trust. If you don't then there is a danger that you will pay a lot of extra tax.

This kit provides you with a range of pro-forma Distribution Minutes that you can use to make appropriate trust resolutions.

This document is suitable for producing minutes for a single Trust Deed. If you need to produce minutes for multiple Trust Deeds, then consider using Trust Distribution Minutes Library for 2017/18 - Multi-use.

Do it BEFORE the end of the financial year.

Don’t forget to do “Family Trust Distribution Minutes” before the end of the financial year.

Understand how Div 7A operates.

Division 7A is a significant source of negligence claims against accountants. If you don’t know how this Division operates, get your accountant or lawyer to explain it to you.

Old style minutes are no longer appropriate.

Unless there is something contrary in the Deed, the “net income” of a trust is determined under generally accepted accounting practice, rather than by the tax laws.

“Accounting net income” is not usually the same as “net income for tax purposes”. For example, the effect of capital gains tax indexation, the carry forward of losses, accelerated tax depreciation rates, the “quarantining” of foreign losses, non-deductible provisions, and prepayments can cause the two concepts to differ.

You should check to see if your Trust Deed requires the accounting income of the trust to be distributed to beneficiaries. If so, you might wish to amend the Trust Deed to allow for the net income for tax purposes to be distributed instead.

Use our minutes to effectively distribute Trust income under the current law.

We have put together a pro-forma “Family Trust Distribution” minute which is fully compliant with the current law. You can get your hands on these excellent pro-forma distribution minutes, for both Family Trusts and Testamentary Trusts, from www.lawcentral.com.au.

What do I get with this document?

You get Discretionary Trust Distribution Minutes covering a range of scenarios that you are likely to encounter in making your trust distributions. These include situations where what is being distributed includes net capital gains, franked distributions, and scenarios where you may wish to “stream“ income of a certain type.

The Trust Distribution Minutes assume that your trust deed has an “income equilisation clause” of some type, together with a clause allowing the streaming of particular classes of income. If your Trust Deed does not contain such clauses, you should consider purchasing Law Central’s “Family Trust - Streaming and Bamford Update”

Build it now.

Checklist is not available for this document.

Sample is not available for this document.

Name of Trust
• What is the trust's name? I can't find it.
• What am I buying?
• Minutes also for Testamentary Trusts as well?
• Why are these minutes usable for only one trust?

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Name of Trust

• What is the trust's name? I can't find it.

  Every trust has a name.
  
  Get out the trust deed. The name may be on the cover page, front page or in the last few pages.
  
  The trust name is often named after the person that asked for the trust in the first place. For example, if the accountant set up a trust for Mr. Smith then the trust is perhaps called the "Smith Family Trust".
  
  If the trust is a Testamentary Trust then the trust is often called after the deceased person or the main beneficiary. E.g. "Smith Testamentary Trust".

  This hint is provided by Law Central Legal.

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• What am I buying?

  You are purchasing 2 things:
  
  1. Draft minutes that will help you prepare fully ATO compliant distribution minutes for your family trust, discretionary trust or testamentary trust. Another name for these draft minutes would be "pro-forma" minutes. These are for you to copy and use for one trust only.
  
  2. You also get Explanatory Notes throughout these pro-forma minutes.

  This hint is provided by Law Central Legal.

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• Minutes also for Testamentary Trusts as well?

  Yes, that is correct.
  
  The pro-forma minutes are needed for family trusts, any type of discretionary trusts and testamentary trusts.
  
  A testamentary trust is a trust that is created in someone's Will. A Will only comes into operation when the person who made it dies. Therefore, the testamentary trust only starts when that person dies.

  This hint is provided by Law Central Legal.

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• Why are these minutes usable for only one trust?

  Each pro-forma minute is usable for only one trust. The prices are low to reflect that.
  
  You can't use the pro-forma minute for other trusts.
  
  If you need to use the minutes library for multiple trusts, then use: Trust Distribution Minutes Library for 2017/18 - Multi-use.
  

  This hint is provided by Law Central Legal.

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This document has been prepared by the law practice Law Central Legal