The Late Royce Rolls passed away on 5 August 2018. His Will provided that from any...
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The Late Royce Rolls passed away on 5 August 2018. His Will provided that from any trust net income: • The first $30,000 is to be paid to Lindy, his wife. • The next $20,000 is to be distributed to Rock his son. Rock is aged 25 and currently bankrupt. • Of any remaining income not distributed to Lindy and Rock: 40% is to be distributed to Cindy, his 20 year-old daughter. 25% is to be distributed to Dot, his 17 year-old niece. • 35% to be retained or distributed at the discretion of the Trustee. The trust had net income of $120,000 for the 2019/20 tax year. During the year, the Trustee made a discretionary distribution of $8,000 to Cindy to assist with her education. During the year, Dot also received a distribution of $30,000 from the Gerard Discretionary Trust (her parent's inter vivos family trust). There was $14,100 of tax paid by the Trustee for this amount. Prepare a schedule (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 • Which SECTIONS of the Act apply to make the income assessable • WHO IS ASSESSED on each amount • The AMOUNT retained or distributed Calculate tax payable by the trustee. Calculate tax payable by Dot. The Late Royce Rolls passed away on 5 August 2018. His Will provided that from any trust net income: • The first $30,000 is to be paid to Lindy, his wife. • The next $20,000 is to be distributed to Rock his son. Rock is aged 25 and currently bankrupt. • Of any remaining income not distributed to Lindy and Rock: 40% is to be distributed to Cindy, his 20 year-old daughter. 25% is to be distributed to Dot, his 17 year-old niece. • 35% to be retained or distributed at the discretion of the Trustee. The trust had net income of $120,000 for the 2019/20 tax year. During the year, the Trustee made a discretionary distribution of $8,000 to Cindy to assist with her education. During the year, Dot also received a distribution of $30,000 from the Gerard Discretionary Trust (her parent's inter vivos family trust). There was $14,100 of tax paid by the Trustee for this amount. Prepare a schedule (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 • Which SECTIONS of the Act apply to make the income assessable • WHO IS ASSESSED on each amount • The AMOUNT retained or distributed Calculate tax payable by the trustee. Calculate tax payable by Dot.
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Schedule of Beneficiaries Beneficiary Presently Entitled Legal Disability Section Assessed On Amount ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
Posted Date:
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