Trusts 2019

Present entitlement and the dissenting beneficiary

Source: Taxation In Australia Journal Article

Published Date: 1 Jun 2019


Appointment of trust income to an object is invariably a unilateral act of the trustee. However, a trustee cannot mandate that a presently entitled beneficiary accept an allocation of income. A beneficiary, for many reasons, may not wish to possess a trust interest, but the ability of a beneficiary to effectively disclaim an appointment of trust income is not often a straightforward proposition. This is particularly the case where an unwitting beneficiary is deemed to have tacitly accepted and/or constructively derived the interest. Indeed, the potential tax outcomes facing the beneficiary are usually invisible until professional advice is sought, and this is frequently the case after a notice of amended or default assessment has been issued by the Commissioner.

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Trusts 2019

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