Family Trust Elections
There are major implications when an entity who has made a Family Trust Election (FTE) and Interposed Entity Election (IEE) makes distributions outside of the family group.
- When is an FTE or IEE required?
- What are ‘distributions’?
- Who is part of the ‘family group?
- Who is liable to pay family trust distribution tax?
- When are distributions made outside of the family group?
- What should my trust deed say to help with these issues?
There are a number of issues to consider in drafting year-end trustee resolutions.
- Is the trust resolution drafted in accordance with the deed?
- Should the trustee re-characterise trust income?
- Does the resolution effectively stream dividends and capital gains?
- Considering significant individual and CGT concession stakeholder issues:
- when are they important?
- what distributions are required to ensure that there is a significant individual or CGT concession stakeholder?
Division 7A permeates many end-of-financial-year discussions.
- What Division 7A rules apply for 2020?
- What changes may come in that affect our planning?
- How should we act in 2020 to prepare for those changes?
Base rate entity rules and the timing of distributions
The base rate entity rules are a major influence in much end of financial year planning.
- Where are we at with the base rate entity rules?
- What is a base rate entity for 2020 and 2021?
- What are the different tax rates for 2020 and 2021?
- Why should a distribution be made in 2020, and when should it wait for 2021?