Distribution resolutions

Distribution resolutions

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This precedent contains a selection of template distribution resolutions.

The distribution resolutions are provided as a guide and are designed to be used with the trust deeds within the Tax Law suite of precedents, “Trust deed - family discretionary trust” and “Trust deed – fixed unit trust”.

Using this precedent

These template resolutions should be carefully reviewed against the relevant trust deed to ensure the cross-references to the trust deed are correct.

The relevant resolutions should be copied into an appropriately drafted resolution or minute of the trustee.

Accounting advice

The trustee should obtain specific accounting advice to ensure that the distribution resolutions are appropriate in each year and that all beneficiaries receiving distributions fall within the relevant beneficiary definitions in the deed.

The precedent also includes an option to distribute income with reference to the recipient’s taxable income (known as a “reverse engineered” distribution). This option should be used with care, in the context of the ATO’s concerns outlined at issue 1 of TD 2012/22EC.

This precedent has been authored for LexisNexis by Matthew Burgess, Director, View Legal.