Regardless of the circumstances of the termination of the trust, it is important this termination is valid, ensuring trustee/s, beneficiaries and other associates can be satisfied that all taxes are paid, assets have been realised, liabilities effectively dealt with, and all related matters addressed.
Firstly, ascertain the taxation consequences and monies required by the Trustee to wind up the trust so that this amount can be retained in the Trust.
Make a resolution as to the distribution of capital and income disbursing the assets of the trust (except for the amount required above).
After completion of the resolution, the Trustee to resolve to bring the vesting date forward and thereby wind up the trust.
Then notify the ATO the trust has been wound up, for purposes of income tax and GST.
Related Tag: Discretionary Trust Set Up