The tax rules for family trust have recently changed.
What is a family trust?
The Legislation was amended in 2017.
Reviewing your trust deed is a must to ensure you don’t get lumped with paying additional tax.
Have you got a trust which includes a person working or living overseas?
If a family trust includes one or more beneficiaries who reside overseas (known as a “foreign person”), the trust may be required to pay additional tax.
Who is classed as a foreign person?
Any beneficiary who lives or works overseas, even temporarily, for more than 180 days.
What if my trust includes a foreign person?
The trust will end up having to pay additional tax.
How can I avoid paying the additional tax?
You can avoid this situation by amending the trust deed. You will need to exclude any foreign beneficiaries from the trust to avoid paying the additional tax.
It is essential you review your trust deed to ensure it complies with the new legislation.
If you need assistance with reviewing and amending your trust deed, contact us.