To incorporate a Trust into your model, you need to first create a Trust entity.  To do this:

1.      Click on the SMSF and Trust Module in the left-hand Module Menu

2.      Click on the blue CREATE NEW TRUST button, which opens the Add Trust Source screen

3.      Enter the name of the Trust

4.      Select the Distribution Frequency from the dropdown menu; either Monthly or Annual

5.      Click the blue ADD button.  

This will open up the Trust details, such as Income Distribution, Beneficiaries and Trust Income.

6.      Click the orange ADD button to enter the relevant data into each field.  (See Helpful Hints below the screenshot for what to enter).

5.      Click the orange UPDATE button to save the data entry.

Helpful Hints on how to complete the Trust Income information:

1.      ADD the Income Distribution type.   Choose from Equal Shares, Equal Taxable Income, or Nominated Percentages.

         Click UPDATE to save.

1.      In this case I have selected 'Nominated Percentages'.

        This client is distributing Trust income between the two members in the model, and a smaller portion to their two children.

         In this example I have included Trust Income of 40% to each of the clients, and 10% each to their two children.

2.    If you have selected Nominated Percentages, you will need to ADD the 'Beneficiaries within Model' percentage distribution.

        Click UPDATE to save.

If there are any beneficiaries outside of the modeled client, you can add those under the 'Beneficiaries outside Model' section.  You will also need to add the taxable income for the beneficiaries outside of the model (as shown below), for correct taxation calculations.

3.      ADD the Annual Trust Income, with the applicable growth rate.  

         Click UPDATE to save.

Next Article:     Income