What is the difference between Class Portfolio and Class Trust? What are the benefits?
Class Trust has all the same features of Class Portfolio, with the addition of:
- Trust specific Financial Statements (FS) (Although you can generate Financial Statements for a Trust in Class Portfolio, these are very basic and not in line with the industry standard)
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The Trust specific Financial Statements include:
1. New Profit & Loss which includes how the retained profits were distributed to the Beneficiaries
2. Improved Notes to the FS with superfluous notes removed and new detailed notes added for Beneficiary Accounts, Reserves, Cash at Bank, Receivables, Loans, etc.
3. Compilation Report
4. Trustee Declaration Report
5. Unpaid Present Entitlement (UPE) has been renamed to Beneficiary Accounts to provide more flexibility for drawings and capital contributions
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New Tax Reports:
1. Tax Accounting Reconciliation Report – reconciles the Net Profit/Loss back the Trust’s Net Income.
2. Statement of Net Income Report – like the Statement of Taxable Income report, but for Trusts. This report provides a reconciliation of the figures for the trust tax return and a breakdown of the transactions affecting each figure plus their relevant trust tax return label.
3. Statement of Distribution Report – provides breakup of each beneficiary’s tax components required for the Statement of Distribution section in the trust’s tax return. -
Improved Beneficiary Distribution event with:
1. An Automated Capital Losses Reserve (Class will recognise any capital losses and automatically journal these to the Capital Losses Reserve and adjust the amount available for distribution and when there is a capital gain the following year, Class will know what amount it needs to take from the Capital Losses Reserve and again automatically adjust the amount for distribution
2. An Automated Asset Valuation Reserve. Where the Trust has selected the option to carry assets at Market Value, Class will automatically journal any unrealised gains to the Asset Revaluation Reserve and adjust the amount available for distribution
3. The ability to adjust the income available for distribution with a Trust Income Definition Reserve
4. TFN Withholding Credits are automatically posted as credits to the Beneficiaries when all income has been distributed
How can I transfer my Trusts in Class Portfolio to Class Trust?
- There is no requirement to transfer or migrate trusts that are on Class Portfolio. Once Class Trust is on for your business/trust, the additional functionality will just become available for these trusts, i.e. you will see new fields in the Beneficiary Distribution event for the Capital Losses Reserve, etc and when you generate the Financial Statements it will just automatically use the new version.
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Depending on your Trust, there may be a couple of items to consider so you get the most from the new functionality:
1. You have manually posted capital losses and or unrealised gains to the (general) Reserve. You can use the Equity Adjustment event to transfer money from the Reserve to the new Capital Losses or Asset Revaluation or Income Adjustment Reserve.
2. Some of your trusts are unit trusts. In this instance the first step is to change the trust type (i.e. Fixed Unit Trust). Once you have done that, you will see that you have Unit Buy/Sell Adjustment event for this Trust, and you can add the unit quantity using these events or by adjusting the opening balance and adding the Contributed Unit Capital and Contributed Unit Quantity there.