Important information about your trust
A critical responsibility for a trustee of a Discretionary Trust (eg. your Family Trust) is to pass a formal resolution to distribute the income or profit of the Trust by 30 June each year. This is done through a Trust Distribution Resolution.
NOTE: If a trustee fails to make a resolution to distribute Trust income or profits by the end of the financial year, the trustee may be assessed on the Trust income at the highest marginal tax rate, rather than intended beneficiaries being taxed individually.
Before signing a Trust Distribution Resolution, it is important to review the affairs of the Trust for the financial year and inform us if there have been any significant events that have taken place during the financial year that we may not be aware of, so that the Distribution Minute can be updated.