Trust to Trust distributions

There is Disc Trust A with a corp trustee A and Disc Trust B with corp trustee B.

John Smith is a specified beneficiary in trust A and trust B and also a director of corp trustee A and corp trustee B.

DT A receives distributions / dividends every year and DT B is running losses.

Can DT A distribute some income to DT B given the John Smith connection? The trust deed allows for 'any other related companies or trusts' under the general beneficiary scheduling. Is there a need for IEEs?

Any input appreciated. Cheers
 
You need to determine if this could infringe the rule against perpetuities. Depends on the construction of the deed.

The trustee will also need to determine if the 2nd trust falls into the definition of beneficiariary. 'Related entities' is a vague description.

Also need to meet the loss carry forward rules and make sure the trust is still valid - does the trustee hold property? Family Trust election been made? Size of dividends
 
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