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Court cracks down on income payments by family trusts

This is what you need to do to prevent your assets coming under fire from estranged family members.

The role of trustees in popular discretionary family trusts is under review after a landmark court case that found the trustee of a $23 million fund set up by ageing parents had failed to exercise “real and genuine consideration” for two of their three children.

The decision has challenged what trustees should consider when making distributions, how they communicate that decision to beneficiaries and possible avenues for aggrieved beneficiaries to challenge their decisions.

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Duncan Hughes was a reporter at The Australian Financial Review

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    Original URL: https://www.afr.com/wealth/personal-finance/court-cracks-down-on-income-payments-by-family-trusts-20221213-p5c61e