Sheila Needs Money? Let Me Count the Ways

Yes, the concept of trusts is odd. As a trustee, you own something but you don't. As a beneficiary you don't own anything but you do.

If there is anything more "esoteric" and more complex than trusts, then it's the taxation of trusts.

Try grappling the "final" result of the Australian tax case of Bamford: http://sites.thomsonreuters.com.au/tainsight/2010/04/12/the-bamford-case-initial-reactions-from-the-tax-industry/

Now for those with trusts subject to tax down under (whether you know it or not), have options. You can cook the books a number of ways to obtain the best tax result. "According to Peter Gell of law firm Hunt & Hunt, this judgement implies that family discretionary trust deeds should now be reviewed. The trustee should be allowed to choose income for distribution either on a trust law basis, accounting basis or taxation basis, depending on the outcome desired by the settlor. Usually this will mean grounding a present entitlement to a beneficiary, to ensure that the trust income is not taxed at penal trustee rates." Three versions of reality.

If you don't have "qualified" TRUST accountants on your team, you may want to re-visit that situation. Hate to see some Sheila sue you for failing to properly present all the options available before you made some distribution.