Once the taxable profit of a trust is determined it is then possible to reduce the tax even further by distributing that profit amongst the various family members of the people behind the trust to:

• Absorb any tax free rates of taxable income
• Use up the low income rates of tax
• Before finally using the middle rates of tax.

In this way, we might be able to distribute income to:

• Children
• Nieces and nephews
• Parents
• Grandparents
• Siblings
• And even, companies and trusts owned/controlled by the people behind the trust.

Obviously, you should seek specific advice before adopting any of this but do consider managing your tax situation a little more aggressively than you might otherwise have done, but, stay within the law!

Tax cheats go to jail!