Overview
Vesting a trust may require disposing of all of the trust's assets to beneficiaries so that none remain. The process of a trust vesting will be specified in the trust's deed. This article is desinged to assit in the proccess of vesting a trust in Simple Invest 360.
Please Note
Before vesting the trust, please review to the trust deed of the trust to ensure the correct actions are taken.
Summary
Vesting a trust within Simple Invest;
The following steps are the recomneded steps when processing a vesting trust in Simple Invest 360.
The first step to vesting a trust requires all of the entries for the current period (up to the vesting date) to be processed via manual Transaction Input or uploaded and matched using SI360's Connected Services and Smart Matching features.
This will allow Simple Invest 360 to complete the required system journals to allocate the correct amounts of tax. Completing the workflow for the trust will also populate the Tax Return allowing user to lodge the Final Trust Tax Return.
Finally, you will need to clear any suspense accounts and adjust the bank account to reflect the tax payable/refundable amounts.
This can be done by posting the following journal:
| Account | DR | CR |
|---|---|---|
| Manual Suspense Account - 99900 and/or 94920 - Member Data Clearing Account | $100,577.11 | |
| Bank - 60400/Bank | $97,022.22 | |
| Income Tax Payable/Refundable - 85000 | $3,554.89 |
Note that in this example, there is a Tax Payable amount. The exact journal to use will depend on the trust's final tax position.