Recorded Webinar: When Assets of Testamentary Trusts Become Assets of the Beneficiaries: The Tax Implications

The lifespan of a testamentary trust will be reliant upon the terms of the deed. Some of those terms state that the trust is to exist for a number of generations, or until beneficiaries reach a certain age, or until a variety of other requirements are met. This session looks into the tax aspects of a TT that has assets remaining when it reaches the end of its life, including:

• Can a TT end before the conditions of its deed say it can?
• What are the tax consequences, if on the termination of a TT, the trustee:
  • sells CGT assets prior to, however in the same financial year, as the final distribution
  • transfers remaining CGT assets to beneficiaries?
• Can the trustee extend a vesting date, and if so:
  • are there any tax consequences?
• Can a discretionary TT continue to be discretionary if its vesting date has passed?
• When may beneficiaries be the “taxpayer” for a CGT asset, even though the asset is held or sold by a trustee of a TT, including:
  • why it may matter whether or not the asset in question is “fungible” (TR 2004/D25)
  • the tax treatment when there are multiple beneficiaries
• The tax implications when the CGT asset remaining on the cessation of a TT is a property remaining after the death of a life tenant, where:
  • the property is sold by the trustee and funds disbursed to remainder beneficiaries
  • the property is transferred to remaining beneficiaries
• Practical examples