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.