Beneficiary loan accounts

Discussion in 'Accounting & Tax' started by Joseph__, 24th Aug, 2008.

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  1. Joseph__

    Joseph__ New Member

    Joined:
    1st Jul, 2015
    Posts:
    2
    Location:
    Sydney
    Hi,

    Please advise how beneficiary loan accounts work in a trust.

    How is a beneficiary loan a accounts receivable under assets and how a beneficiary loan can be as a unsecured loan under liabilities.

    Thanks.
     
    Joseph__, 24th Aug, 2008
    #1
  2. Rob G

    Rob G Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    966
    Location:
    Melbourne
    Depends on whether the account is in debit or credit.

    Debit balance: Beneficiary owes money to trust (asset of trust).

    Credit balance: Trust owes beneficiary money (liability of trust).

    Also, how does your trust deed treat unpaid present entitlements. Even if they are not treated as loans by the deed, the ATO might deem them to be.

    Cheers,

    Rob
     
    Rob G, 25th Aug, 2008
    #2