Launched in May 2023, this feature formalises the advice to beneficiaries regarding their entitlements and captures their instructions to trustees on how to handle these entitlements.
Understanding Section 100A
Section 100A is an anti-avoidance provision designed to prevent tax benefits arising from pre-existing agreements between two or more people. If Section 100A is applied, the beneficiary is treated as if they were never entitled to the trust income, and the trustee is taxed at the highest individual tax rate of 47%.
New Beneficiary Form
This form is produced for each beneficiary to:
Indicate their payment instructions.
Sign and formally agree that there has not been any prior agreement with the trustee.