TEN – 1st Annual Trusts Taxation Symposium – 16 September 2013

On 16 September 2013, I presented ‘Trust Resolutions: The Devil is in the Drafting’ for the Television Education Network’s 1st Annual Trusts Taxation Symposium being held on 16 & 17 September 2013.

Preparing trust distribution resolutions in a busy practice is an unenviable task.

There are continuing uncertainties regarding the taxation of trusts and a risk approach must be adopted regarding how to address the uncertainties when preparing trust distribution resolutions.

A methodical approach to training staff and undertaking work will assist to address these risks and to improve the quality of trust distribution resolutions.

The paper discussed:

  • approaches to drafting trust distribution resolutions;
  • determining distributable income;
  • allocating expenses and losses;
  • differentially streaming income and capital gains;
  • managing non-resident beneficiary distributions;
  • example trust distribution resolutions; and
  • the consequences of invalid trust distributions and additional amended assessment income.

This paper addresses the practical drafting aspects of preparing trust distribution resolutions and adopts a functional approach to trust distribution resolutions.  The paper refers to illustrative trust instrument clauses and trust distribution resolutions.