The following question is based on the material in Chapter 2 of the textbook Advanced Income Tax Law:

Q3.

(Trusts - Discretionary distribution)

The estate of the Late Olivia Little (died 2015) derived a net income of $140,000 during the 2017/18 tax year.

The will provided that trust income was to be distributed as follows:

Tim	Her husband	40% of any income
Shaun	Her 25 year old son who has been certified insane	25% of any income
Rosa	Her 20 year old daughter who is a full-time student	15% of any income
Kristy	Her 17 year old daughter who is employed full-time	10% of any income

The Will also provided that the balance be either retained or distributed to a beneficiary at the discretion of the trustee. During the tax year, an additional amount of $9,000 was paid towards Rosas overseas trip.

Required:

Complete the following table (covering all beneficiaries) nominating:

• Name of the BENEFICIARY
• Whether or not the beneficiary is PRESENTLY ENTITLED
• Whether or not the beneficiary is under a LEGAL DISABILITY
• WHO IS ASSESSED on each amount
• Which sections of the ITAA36 apply to make the income assessable
• The AMOUNT retained or distributed.

Beneficiary	Presently entitled? (Yes/No)	Legal disability? (Yes/No)	Who is assessed? (Beneficiary or Trustee)	ITAA36 Section(s) Applicable	Amount $
Tim
Shaun
Rosa
Kristy
Balance
				Total	$