Private ruling: Excepted trust income
Date of advice: 26 June 2019
Published: August 2019

Ruling: Q1: Will any distribution made to a minor beneficiary of the Trusts be 'excepted trust income' for the purposes of section 102AG of the Income Tax Assessment Act 1936 (ITAA 1936)? Yes. Provided the minor beneficiary is not an excepted person as defined in subsection 102AC(2) of the ITAA 1936. Excepted trust income is defined in subsection 102AG(2) of the Income Tax Assessment Act 1936 (ITAA 1936) and includes an amount that is assessable income of a trust estate that resulted from a Will, codicil or an order of a court that varied or modified the provisions of a Will or codicil (subparagraph 102AG(2)(a)(i) of the ITAA 1936. The Trusts resulted from a Will which satisfies the conditions set out in subparagraph 102AG(2)(a)(i) of the ITAA 1936. Accordingly any income that the Trusts distribute to the minor beneficiaries (who are not excepted persons) will be excepted trust income. Year ending 30 June 2019 Year ending 30 June 2020 Year ending 30 June 2021 Year ending 30 June 2022 1 July 2018 The deceased died in 20XX. The deceased's Will was dated 20XX and probate was granted in 20XX. The Executors of the Will are the children. The Will referred to the creation of three testamentary trusts (collectively the Trusts). After probate had been granted and while administering the Will, the Executors noticed some typographical errors in the Will. The executors all agreed to enter into a deed to rectify the mistakes to save the cost of going back to the Supreme Court. The deed acknowledges that the executors will administer the Will in accordance with the changes as if those changes had been incorporated in the Will when the deceased had signed it. The deed does not significantly change the Will. Income Tax Assessment Act 1936 Division 6AA Income Tax Assessment Act 1936 Section 102AC Income Tax Assessment Act 1936 Section 102AD Income Tax Assessment Act 1936 Section 102AE Income Tax Assessment Act 1936 Subsection 102AG