This paper explains in plain and practical terms:
- the present controversy involving trusts and distributions of income
- what happens when trust income and tax income aren't equal
- why reading a trust deed is critical to ensure that the distribution is legally effective
- sample extracts from trust deeds and sample minutes to effect valid distributions of trust income
- why you need to get it right - the distinction between income and capital distributions
- why "failsafe" clauses in trust deeds can be an effective way of dealing with disputed trust distributions