Charisteas & Charisteas

Marriage Act 1961 (Cth), and the entitlement of the husband and wife to a share of the trust fund on vesting was property for the purposes of s 90AB of the Income Tax Assessment Act 1936 (Cth). The husband, the wife, and their three children were beneficiaries of a discretionary trust. The husband's mother was the trustee and controlled the trust. The trial judge ordered that the trust vest and the trust fund be distributed among the five beneficiaries, subject to a specified sum being paid to the husband's mother to satisfy her future entitlements under the trust. The husband's mother and other parties appealed the decision. The Full Court held that the entitlement of the husband and the wife to share in the trust fund on vesting was property for the purposes of s 79 of the Marriage Act 1961 (Cth) and s 90AB of the Income Tax Assessment Act 1936 (Cth). The Full Court held that the trial judge's order was correct and dismissed the appeal. The Full Court further held that the husband and wife were entitled to a share of the trust fund on vesting, subject to the payment of the specified sum to the husband's mother. The Full Court ordered that the trust be vested and the trust fund be distributed among the five beneficiaries, subject to the payment of the specified sum to the husband's mother.