As always, trustees of discretionary trusts are required to make and document resolutions on how trust income should be distributed to beneficiaries for the financial year by 30 June.
Why? To avoid paying extra tax of up to 47% of Trust profits.
So steps we need to undertake on your behalf include:
- Review of your prior year Trust Distribution Resolution
- Confirmation with you of the estimated Trust income of your Trust for the year ended 30 June
- Review of your Trust Deed to ensure that the income definition and distribution clauses in your Trust Deed allow the proposed Trust Distribution Resolution for 30 June
- Preparation of Trust Distribution Resolution and ensuring it is signed by the Trustees PRIOR to 30 June
Trust accounts do not need to be prepared by 30 June only the resolutions.