Trust Tax Fundamentals 2026: Trust Income & Beneficiary Entitlements

Understand how trust income flows to beneficiaries, when trustees are taxed including rules for present entitlements.

In this session, we cover:

• Who gets taxed?

  • When there is income to which no beneficiary is presently entitled

  • When beneficiary is presently entitled

• Present entitlements

  • Conditions for a beneficiary to be ‘presently entitled’

  • Legislative extensions

  • Timing of distribution

  • Income variation resolutions

  • Specific considerations for discretionary trusts

• Trustee distribution minutes

  • Reading the deed

  • Definitions of income

• “Net income” of a trust

• Taxing the beneficiary

  • Beneficiary presently entitled and not under legal disability

  • Beneficiary presently entitled but under legal disability

  • Minors

  • No beneficiary presently entitled

• “Net income” vs “Trust law income”

• Beneficiary disclaimers of entitlements

• Trustee assessments & PS LA 2015/2