Please can you assist me with regard to distributions to the beneficiaries of a trust.
My questions are:
1 What are acceptable "costs of happiness and well being" from a SARS point of view?
School fees, holidays, gifts, extramural expenses etc seem to be common.
But what about entertainment: going to the movies, eating out, cell phones? In our opinion as the trustees, all these expenses are for the benefit of the child. Do you know of a list that I could see?
2 If I distribute R3,000 to a minor child (over and above actual expenses as in 1 above) but do not pay it into that child's bank account (thereby creating CR: Loan Child A with matching DR: Trust bank A/C) can that money be loaned to another beneficiary (thereby creating CR: Loan Child A with matching DR: Loan Child B)?
Many thanks for your time,