Published on 01 Feb 05
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
One of the advantages of holding assets through a discretionary trust (provided the power is in the trust deed) is the ability to distribute assets to one or more beneficiaries of the discretionary trust in the form in which those assets are held by the trustee (a distribution in-specie), rather than conversion of the assets to cash prior to distribution. The flexibility of the method by which these distributions are made is generally not available through corporate structures where rights held by shareholders must be considered and the procedure for capital reductions in the Corporations Act 2001 must be followed.
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