View the step-by-step solution to:


(Trusts - Discretionary distribution)

The estate of the Late Olivia Little (died

2015) derived a net income of $140,000 during the 2017/18 tax year.

The will provided that trust income was to be distributed as follows:

Tim Her husband 40% of any income

Shaun Her 25 year old son who has been certified insane 25% of any income

Rosa Her 20 year old daughter who is a full-time student 15% of any income

Kristy Her 17 year old daughter who is employed full-time 10% of any income

The Will also provided that the balance be either retained or distributed to a beneficiary at the discretion of the trustee. During the tax year, an additional amount of $9,000 was paid towards Rosa's overseas trip.


Complete the following table (covering all beneficiaries) nominating:

·        Name of the BENEFICIARY

·        Whether or not the beneficiary is PRESENTLY ENTITLED

·        Whether or not the beneficiary is under a LEGAL DISABILITY

·        WHO IS ASSESSED on each amount

·        Which sections of the ITAA36 apply to make the income assessable

·        The AMOUNT retained or distributed.

Beneficiary Presently entitled? (Yes/No) Legal disability? (Yes/No) Who is assessed?(Beneficiary or Trustee) ITAA36Section(s) Amount $









Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Tax law tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors