(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 $
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