Excepted trust income

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

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 ?

Yes. Income derived by the trustee from the investment of the superannuation death benefit is excepted trust income. This ruling applies for the following periods : 1 July 20XX to 30 June 20XX The scheme commenced on: 1 July 20XX

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.

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)