Trust Dividend

In: Trust

Q: The family trust receives an $80,000 unfranked dividend from Company A at the end of the year. The trustee of the trust is a company. Can all the income of the family trust, minus any expenses, be directed to one beneficiary who happens to be the director of both the trustee company and Company A?

A: Yes, it's possible. There are no legal barriers preventing such a dividend payment. Companies, including trustee companies, are considered separate legal entities from their directors.

If you have any questions, feel free to contact Tax Ideas Accountants & Advisers. You can also book an appointment through our live calendar.

Tags: Trust

Written by Ideas Group

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