Discretionary Trust Distribution Minute
Use Cleardocs to create effective resolutions for distribution of your Discretionary (Family) Trust income. The Cleardocs package makes it easy and helps you to comply with all ATO and trusts law requirements. Trust income must generally be distributed to beneficiaries before the end of the income year (30 June).
Time taken to complete 10 minutes.
Cost $ 60.50 (inc GST)
Legal Sign-offThe master documents are written in plain language and are signed-off by our lawyers at Maddocks.
What documents are included in the Cleardocs package?
The Cleardocs Trust Distribution Minute package includes:
- minutes or resolutions of the trustee(s) or director(s) of the corporate trustee (as needed by your particular trust);
- an Establishment Kit explaining what to do next.
What information do you need to order the Trust Distribution Minute?
Our checklist outlines all the information required.
Trustee obligations to distribute income
It is important for a trustee to plan for end of year distributions. Our ClearLaw article titled "Tax issues for trusts — essential reading for all trustees" outlines the effect of a trustee's resolution to distribute income and the tax consequences of a trustee failing to pass a resolution by 30 June, or at all. Further guidance is provided in Tax Determination 2012/22 and the ATO's Resolutions checklist.
Cleardocs deed not required
To use this Cleardocs Package, a trust does not require an underlying Cleardocs deed.
If the trust does not have a Cleardocs deed in place, you should review the deed to ensure the Minute or Resolution is consistent with the procedures set out for the particular transaction or event. If you are unsure, you should obtain your own legal, financial and accounting advice — we cannot give you that advice.
Do I need minutes or resolutions?
The Cleardocs Trust Distribution Minute product recognises that trustees can make decisions as follows:
|1 individual trustee||by the sole trustee signing a resolution|
|Individual trustees||at meetings (that is, documented as minutes)|
|Corporate trustee — 2 or more directors||at meetings (that is, documented as minutes);
by all directors signing a set of resolutions
|Corporate trustee — 1 director||by the sole director signing a set of resolutions|
Seek legal advice
The Trust Distribution Minute information here should be considered general in nature, and in no way interpreted as legal advice. You must always seek your own independent legal, accounting and financial advice about your particular situation. The summary on this page is for information purposes only.
Questions or further information
If you have questions:
- about how to use Cleardocs, contact the Cleardocs helpline on 1300 307 343.
- about legal issues, contact the Cleardocs helpline on 1300 307 343. If you need advice, we will arrange for you to speak with a lawyer at Maddocks. The firm provides a free legal helpline in relation to the documents Cleardocs provides. If you require other legal advice in relation to your particular circumstances, then this will be charged for.
- Assists with ATO and trusts law compliance
- The trust does not require an underlying Cleardocs deed
- Pre-population of trust details from earlier Cleardocs orders - saving you typing
- Flexibility in allowing for interim and final distributions
- Easy to use question interface
- Extensive online help and local phone support