Trust Resolutions
We enclose a trustee resolution template to enable you to comply with new ATO regulations governing discretionary trust distributions.
In essence it means that unless you make a resolution by 30 June, the ATO may be able to tax all the default beneficiaries, or the trustee at 45% of the trust income.
We have prepared resolutions for either an individual or company trustee below. These have been based on CPA samples, but we are not lawyers and don’t have access to your trust deed. Hence we can’t accept any liability, so please see your solicitor if unsure.
To complete the minute, please;
1. hold the meeting
2. amend or delete items shaded blue
3. re-shade all to black and print
4. sign and send back to us by reply-email or fax 1300 019 871
The minute may be signed at a later date, providing it relates to a trustee meeting and resolution made on or prior to 30 June.
We believe it is prudent for a third party such as ourselves to evidence the resolution was made by the due date, hence the request to send back to us. We will do a quick review and include it in your file. A flat fee of $55 is applicable.
Please also note the following and let us know if you need help with these;
1. update of trust deeds – important for older trusts, given recent ATO attacks. cost $440.
2. streaming of franked dividends and/or capital gains – this will need a more advanced resolution, as well as ensuring an updated deed. Streaming basically means the ability to distribute franking tax credits or a capital gain to one beneficiary and not the other, with the view to a substantial tax saving for those concerned.
Please contact us should you require further information.
Kind Regards
BC ACCOUNTANTS
Trustee Resolution
Minutes of meeting of Individual Trustees
VITO & MICHAEL CORLEONE
ABN 11 222 333 444
As trustees of the
CORLEONE FAMILY TRUST
Date 30 June 2012
Place 1 Shady Lane, Melbourne, Victoria
Present Vito Corleone, Michael Corleone, Santino Corleone and Alfredo Corleone
Chair Vito Corleone was elected Chair of the meeting.
Quorum The Chair informed the meeting that a quorum was present.
Trust Deed The Chair noted that Vito and Michael Corleone act as trustees of the Trust established by deed dated 1 January 2005 (the Trust Deed).
Eligible beneficiaries under the Trust Deed:
The Chair noted that:
1.1 The ‘Primary Beneficiaries’ of the Trust are defined in the Schedule to the Trust Deed as follows:
Vito Corleone 2 Coppola Drive, Melbourne 3000
Michael Corleone 4 Coppola Drive, Melbourne 3000
Santino Corleone 6 Coppola Drive, Melbourne 3000
Alfredo Corleone 8 Coppola Drive, Melbourne 3000
1.2 The ‘General Beneficiaries’ of the Trust are defined in the Trust Deed as including:
(a) the Primary Beneficiary or Primary Beneficiaries (as the case may be);
(b) the relatives and spouses of the primary beneficiaries;
(c) any corporation, wherever incorporated or resident, of which any General Beneficiary is a member, whether or not that corporation is in existence at the Commencement Date;
Determination of income under the Trust Deed
The Chair proposed in accordance with the Trust Deed that the income for the Accounting Period be calculated in the same manner as net income is calculated under the Income Tax Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth) (Tax Acts), provided that where, in calculating the net income under the Tax Acts, it is necessary to:
· gross up any amount of income (for example, tax offsets foreign tax credits or franking credits);
· include any amount of deemed assessable income; or
· make any deemed deduction,
then the grossing up or deemed assessable income (excluding net capital gains included in assessable income) or deemed deduction must not be included in calculating the net income of the Trust Fund for the Accounting Period.
Distribution of income under the Trust Deed
The Chair noted and the meeting considered the Trust Deed insofar as it relates to the distribution of the ‘income’ of the Trust by the Trustees to the ‘General Beneficiaries’ of the Trust in an Accounting Period. The proposed distribution of Trust income to be paid, applied or set aside for the Accounting Period ending 30 June 2012 is as follows:
• firstly $10,000 to Michael Corleone
• secondly $30,000 to Santino Corleone
• thirdly 90% of balance to Alfredo Corleone
• fourthly remaining balance to Genco Pty Limited
Resolved
The meeting considered the Chair’s proposals and resolved in favour of them. The Chair instructed the Secretary to do all things as were necessary to give effect to the resolutions passed at the meeting.
Closure
There being no further business the Chair declared the meeting closed.
Signed as a true and correct record.
______
Chair
______
Date Signed
Trustee Resolution
Minutes of meeting of Directors of the Trustee Company;
VITO PTY LTD
ACN 222 333 444
As trustee of the
CORLEONE FAMILY TRUST
Date 30 June 2012
Place 1 Shady Lane, Melbourne, Victoria
Present Vito Corleone, Michael Corleone, Santino Corleone and Alfredo Corleone
Chair Vito Corleone was elected Chair of the meeting.
Quorum The Chair informed the meeting that a quorum was present.
Trust Deed The Chair noted that the Company acts as trustee of the Trust established by deed dated 1 January 2005 (the Trust Deed).
Eligible beneficiaries under the Trust Deed:
The Chair noted that:
1.1 The ‘Primary Beneficiaries’ of the Trust are defined in the Schedule to the Trust Deed as follows:
Vito Corleone 2 Coppola Drive, Melbourne 3000
Michael Corleone 4 Coppola Drive, Melbourne 3000
Santino Corleone 6 Coppola Drive, Melbourne 3000
Alfredo Corleone 8 Coppola Drive, Melbourne 3000
1.2 The ‘General Beneficiaries’ of the Trust are defined in the Trust Deed as including:
(a) the Primary Beneficiary or Primary Beneficiaries (as the case may be);
(b) the relatives and spouses of the primary beneficiaries;
(c) any corporation, wherever incorporated or resident, of which any General Beneficiary is a member, whether or not that corporation is in existence at the Commencement Date;
Determination of income under the Trust Deed
The Chair proposed in accordance with the Trust Deed that the income for the Accounting Period be calculated in the same manner as net income is calculated under the Income Tax Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth) (Tax Acts), provided that where, in calculating the net income under the Tax Acts, it is necessary to:
· gross up any amount of income (for example, tax offsets foreign tax credits or franking credits);
· include any amount of deemed assessable income; or
· make any deemed deduction,
then the grossing up or deemed assessable income (excluding net capital gains included in assessable income) or deemed deduction must not be included in calculating the net income of the Trust Fund for the Accounting Period.
Distribution of income under the Trust Deed
The Chair noted and the meeting considered the Trust Deed insofar as it relates to the distribution of the ‘income’ of the Trust by the Company (as Trustee of the Trust) to the ‘General Beneficiaries’ of the Trust in an Accounting Period. The proposed distribution of Trust income to be paid, applied or set aside for the Accounting Period ending 30 June 2012 is as follows:
• firstly $10,000 to Michael Corleone
• secondly $30,000 to Santino Corleone
• thirdly 90% of balance to Alfredo Corleone
• fourthly remaining balance to Genco Pty Limited
Resolved
The meeting considered the Chair’s proposals and resolved in favour of them. The Chair instructed the Secretary to do all things as were necessary to give effect to the resolutions passed at the meeting.
Closure
There being no further business the Chair declared the meeting closed.
Signed as a true and correct record.
______
Chair
______
Date Signed