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Edited version of private advice
Authorisation Number: 1051574350676
Date of advice: 30 August 2019
Ruling
Subject: Income tax - excepted trust income
Question
Will a prescribed person's share of the net income of the Trust derived from the investment of money received from a deceased estate be excepted trust income under subparagraph 102AG(2)(d)(i) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes. Subsection 102AG(2) of the ITAA 1936 lists the various types of assessable income of a trust estate which are 'excepted trust income' in relation to the beneficiary of the trust estate.
After examining the specific circumstances of the Trust, the Commissioner considers that the Trust satisfies the conditions set out in subparagraph 102AG(2)(d)(i) of the ITAA 1936. Therefore, the income derived from the investment of the money transferred into the Trust from the deceased estate is excepted trust income.
This ruling applies for the following periods
Year ended 30 June 2020 to year ended 30 June 2030
The scheme commenced on
1 July 2019
Relevant facts
The Trust was established by deed in 20XX.
Individual A's last will, dated later in 20XX, contains a gift to the Trust.
Individual A died recently and the estate administration is currently being attended to by the executors. The Trust will receive a distribution from the estate in the 2019-20 income year.
The primary beneficiaries of the Trust include children and grandchildren.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 102AG(2)
Income Tax Assessment Act 1936 subparagraph 102AG(2)(d)(i)
Income Tax Assessment Act 1936 subsection 102AG(3)
Income Tax Assessment Act 1936 subsection 102AG(4)