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Family Trusts Law News August 2011
Review the tax implications for beneficiaries of your family trust
In 2010, the High Court made a decision known as Bamford's case which has impacted the concept of ‘net income' regarding family trusts distributions. After this ruling it is important to update your Family Trust Deed to ensure it remains current and competent. These changes should reflect the decision in Bamford to give the trustee the clear power to:
- determine whether receipts are on revenue account or capital account;
- determine an alternative definition of net income than that provided by s95 of the Income Tax Assessment Act 1936 if preferred;
- stream income; and
- provide for streamed income.
If you have a Family Trust Deed we recommend you have this amended. Should you need any help with this please do not hesitate to contact us.
