New Beneficiary Payment Instructions download for Trust Distribution Resolution update to align with Section 100A

New feature launched May 2023 to formalise the advice to beneficiaries of their entitlements and responses from beneficiaries giving instructions to trustees as to what the trustee should do with the beneficiary’s entitlement

Section 100A is an anti-avoidance provision seeking to prevent a tax benefit arising under a pre-existing agreement between two or more people.

If Section 100A is applied, the beneficiary is treated as if they were never entitled to the trust income and the trustee is taxed at the highest individual tax rate – 47%.

This new form produced for each Beneficiary to indicate their payment instructions and sign and formally agree there has not been any prior agreement with the Trustee.