Build Family Trust Distribution Statement online Price
Family Trust – Distribution Statement 2017/2018 $22
Family Trust – Distribution Statement 2016/2017 $22
Family Trust – Distribution Statement 2015/2016 $33
Family Trust – Distribution Statement 2014/2015 $44
Family Trust – Distribution Statement 2013/2014 $44

Build a Family Trust Distribution Statement on a law firm's website

Each financial year your Family Trust gets an income. It may be from passively renting out property. It may be from operating your business. Someone has to pay tax on that income. Every year you get the choice of which beneficiary pays tax on the income.

Perhaps your son is on maternity leave. His marginal tax rate is low, so you may wish to distribute a big income to your son that year. In the following year, he may be back at work and earning a good salary. In that case, you don't distribute any income to him from the Family Trust. Perhaps your 18-year-old grandchild is now at a high school and not earning any money. In that case, you distribute to that grandchild using up their low marginal tax rate.Family Trust Distribution Statement

The beneficiaries that you distribute to never actually get any money. You are just using up their low marginal tax rates. (The money owed to beneficiaries are called Loan Accounts or Unpaid Present Entitlements. Each year the children or beneficiaries sign a Debt Forgiveness Agreement to reduce the money the Family Trust owes them to zero.)

Sign Family Trust Distribution Statement by the end of financial year?

Build and sign your Family Trust Distribution Statements before the end of each financial year. It is not effective if it is signed after 30 June for that financial year.

Are you an accountant, financial planner or lawyer doing bulk Trust Minutes?
Telephone my lawyers to get a discount voucher on 1800 141 612.
Dr Brett Davies, Taxation Partner, Legal Consolidated Barristers & Solicitors

But I won't know the income of my family trust until after 30 June

The ATO has stated that:

'your resolution does not need to specify an actual dollar amount for the resolution to be effective in making a beneficiary presently entitled...' (Trustees Resolutions QC 25912).

The Resolution you are building states that a beneficiary gets the income up to their marginal tax rate, and then to someone else up to their marginal tax rate. As the ATO states:

'A resolution is effective if it prescribes a clear methodology for calculating the entitlement ...'

Why build Distributions Statements for each financial year?

Since 1994, as a tax lawyer, I have provided a Family Trust Distribution Statement for each financial year. I attend a lot of ATO audits. My doctorate was in tax. The tax laws change. The ATO changes its mind. We prepare the Distribution Statements that reflect those particular rules for each unique financial year.

Does a resolution have to be in writing?

Read your Trust Deed to find out. Do you have a Brett Davies Lawyers or Legal Consolidated Family Trusts Deed? All our Deeds allows for the Distribution Minute to be in writing or oral. Whether the resolution must be recorded in writing depends on your trust deed. However, a written record provides better evidence of the resolution and avoids a later dispute. You don't want fights with the beneficiaries and the ATO.

A written record is essential to stream capital gains and franked distributions. A beneficiary is specifically entitled to franked dividends or capital gains if this entitlement is recorded in writing.

See also:

Update the Family Trust for Bamford streaming only:

legal consolidated

Or, update Bamford streaming PLUS update the rest of the Deed:

Or update for Bamford streaming PLUS the Deed PLUS update the Appointor & Trustee:

Or just update the Trustee:

Or just update the Appointor:

To set up a new Family Trust Deed:

To prepare the Annual Trust Distribution Minutes:

To deal with Division 7A (loan or UPE from your company to the Family Trust):

Or, to forgive the 'loan account' and UPEs (loans from humans to Family Trust):

Change the name of your Family Trust:

To wind up and vest the Family Trust, when you no longer want it:

Telephone us for legal advice on building this document.

Adjunct Professor, Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJDFamily Trust Distribution Statement
Legal Consolidated Barristers and Solicitors
National Australian law firm

National: 1800 141 612
Mobile: 0477 796 959
Skype: brettkennethdavies