Hybrid Trust distribution

[trajik]

In regards to a Hybrid Trust, can the trustee still distribute income and capital at it's discretion before distributing to the unit holders? Or is this only possible if there are no units on issue that have rights to the income or capital?

 

[coastymike]

The trustee can distribute income and capital as it desires provided that this is allowed by the trust deed. However if special income units have been issued then any distribution of income needs to be carefully considered otherwise you may affect the deductibility of interest to the special income unit holder.