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Accounting/bookkeeping of trust distribution

Discussion in 'Accounting, Tax & Legal' started by try anything once, 6th Apr, 2010.

  1. try anything once

    try anything once Well-Known Member

    Joined:
    8th Oct, 2008
    Posts:
    117
    Location:
    melb
    Quick question, - our family trust needs to make a capital distribution to my wife. She will then give this money to an unrelated party. My accountant says that the money can be transferred straight from the Trust's bank account to the 3rd party's account, and that he can show this in the Trust's books as a distribution to my wife to her nominated bank account being the 3rd party's. (ie the money does not need to be transferred to my wife's account first and then on to the 3rd party as a second transaction).

    Does this sound correct?
     
  2. MattR

    MattR Well-Known Member

    Joined:
    23rd May, 2007
    Posts:
    229
    Location:
    Sydney
    Sounds OK, just ensure that you have documentation to account for this e.g. Trustee Minutes.

    If you're still worried, then just doe the two EFT's required.