Allocate Income to Beneficiaries

You use the BENEF form for this. Start by entering the basic ID information for the beneficiaries. It is critical that you identify the beneficiary as resident or non-resident (this determines whether the beneficiary gets a T3 slip or an NR4 slip). Press Ctrl-K to create new beneficiaries.

Now allocate the income to beneficiaries. Specify either a fraction or a fixed amount for each beneficiary. The fractions apply to the income pools that you just finished calculating at the bottom of S9SUP. If you specify a fixed allocation, the amount is split between the various income pools pro rata based on the S9SUP amounts.

Since a trust can have distinct income and capital beneficiaries, you can specify different fractions for income and capital gains. Similarly, you can specify whether a fixed allocation is composed of income, capital gains or a combination of income and capital gains. Note that if you do not specify (e.g. you leave both check boxes below the fixed allocation blank), a fixed allocation is assumed to be income only.

If you want equal allocations for all beneficiaries, jump to the BENS form and complete the "Global Fractions." Then, you do not have to bother completing the fractions for each individual beneficiary.

Note that you must enter the country code where the beneficiary is established. This code will determine the withholding rate used on the NR4 slip (15% for "USA" and "UK" and 25% for all other countries). If a special withholding rate applies because of a treaty with a country other than the United States or United Kingdom, you should override the withholding rate to the desired rate. If the income is completely exempted, you should also enter the appropriate exemption code in Box 18 of the beneficiary's NR4 slip.