Private ruling: Excepted trust income
Date of advice: 17 October 2023
Published: 27 November 2023
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will income derived from the investment of a superannuation death benefit that is paid to the minor's Trust, be considered excepted trust income for the purposes of section 102AG of the Income Tax Assessment Act 1936 ? | A1: Yes. Income derived by the trustee from the investment of the superannuation death benefit is excepted trust income.

Relevant facts and circumstances: Individual A (you)is a minor and beneficiary of an estate proceeds trust (the Trust). Your parent passed away intestate. 'Letters of Administration' were granted to the deceased's parent (the Administrator). The Trust was established by Deed; the delay in setting up the Trust was mainly due to the Administrator's ill health. The Administrator has settled money from your parent's estate into the Trust. You will benefit from the income and capital of the Trust. Your parent also had a superannuation account and you were a beneficiary. The superannuation fund paid the superannuation death benefit to individual B as trustee for you. Individual B did not want to act as trustee in respect of the superannuation death benefit. The superannuation death benefit was paid into the solicitor's trust account. The Administrator wishes to transfer the superannuation death benefit to the Trust in order to reduce the compliance burden of managing different trusts.

Relevant legislative provisions: Income Tax Assessment Act 1936 , Section 102AC | Income Tax Assessment Act 1936 , Section 102AG | Income Tax Assessment Act 1936 , Subparagraph 102AG(2)(c)(v) | Income Tax Assessment Act 1936 , Subparagraph 102AG(2)(d)(ii) | Income Tax Assessment Act 1936 , Paragraph 102AE(2)(c)(ii)