I have a discretionary Trust where they are three potential beneficiaries. The mother who is a tax payer and two minor who are not tax payers. The settlor of the Trust is grandmother of the minor children. The main source of the income is rental . The trustees will have to deduct 45% tax on the income before paying the beneficairies and the beneficiaries will have to complete a tax return and claim any excess tax they have paid
Question.
To avoid this lengthy administration process of completing tax returns, can the trustee create revocable life interest trust for all three beneficairies . If they do , does the trust still have to pay tax at 45% or 20%
Are there any issues to consider
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