Are you struggling to understand the complexities involved in drafting and executing deeds and trust resolutions for S100A? If so, you’re not alone. Here are the ChangeGPS tools to help you.
To do Now
TaxPlan Advanced > S100A Trust Distribution Advice Report
Produce an advice report to outline the impact of the S100A guidelines which changes the way profits from a Discretionary Trust (also known as a Family Trust) can be allocated. For clients with a discretionary Trust, you need to provide this advice report to inform them of the new TR tax ruling – which will impact how they distribute to beneficiaries.
Key features of this new client advice report available in TaxPlan Advanced:
- Discusses the impact of the ATO's new Tax Ruling (TR 2022/4) on the allocation of profits from Discretionary Trusts.
- Outlines the potential risks associated with making trust distributions to adult children or arranging for them to give the distribution back to parents or grandparents.
- Provides advice on how to navigate the ATO's views and stay in the "green zone" to avoid an audit.
Learn more about this and other features of TaxPlan Advanced
To do Before 30 June
Core Pro > Trust Distributions Resolution
Check your Trust Deed to ensure that it enables the Trustee to classify amounts of income by their source and make distributions of that classified income: this will be critical if a beneficiary is to be 'specifically entitled' to a capital gain or franked dividend.
Trust Deed Review Worksheet & VPP Client Email (for Owies Case)
Accountants may need to review existing trust deeds and ensure that the trustees enquire and consider the beneficiaries prior to making a final decision about income they will receive
Use the Trust Deed Review Worksheet available in Core Resources to track client deed updates.
Send the VPP Client email to your client to recommend that the Trust Deed be reviewed and updated for Owies case with the assistance of expert Lawyers.
Produce automated Trust Distributions Resolution Documents
Create and download a simple yet compliant Non-Streaming; or detailed Streaming Resolution without too much fuss.
To do After 30 June
Send the Beneficiary Payment Instructions for confirmation and signing
Use these documents 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
Train your Team
Watch:
Select from 15 x Owies, Section 100A & 2021 4 Professional Firm Profits Webinars and Training Videos below
Read:
What the Section 100A changes mean to your clients