Recent case decisions have highlighted pitfalls in trustee distribution resolutions. They have also introduced uncertainty into the meaning of the term "income" in the context of trust distributions. Further, the ATO's published guidelines on trust distributions require careful consideration when making trustee resolutions. This paper examines:
- the review of trust deeds: what should be checked to ensure that trust distribution resolutions are correct?
- present entitlement: why is this vital when preparing trust distribution resolutions?
- meaning of the term "income": how do current views of the meaning of "income" affect trustee resolutions?
- practical distribution resolutions: for practical purposes, how should distribution resolutions be drafted?