Income distribution from a discretionary trust

Trusts Discussion
1

Morning all,

Having some brain fog on a Monday morning and would appreciate some help clearing it! I have a discretionary trust which is making income distributions and I am assured the tax pool is more than sufficient to make the distributions.

For the Deed of Appointment of Income, should it appoint the flat income figure distributed e.g. £1,000, or should it appoint the income figure distributed plus it’s accompanying tax credit?

Possibly complicating matters, one of the beneficiaries is based in the USA.

Really grateful for your thoughts.

2

We all have that sort of day now and then :frowning:

The deed should only reference the actual distribution being made - the accompanying tax credit is merely an “add-on”.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

3

Thanks so much Paul, really appreciate it