Interest in a trust
1207W Interest in a trust
For the purposes of this Division, if an entity:
has entered into a contract to purchase a beneficial interest in the corpus or income of a trust; or
has a right, otherwise than by reason of holding an interest in a trust, to have such an interest transferred to the entity or to the entity’s order (whether the right is exercisable presently or in the future) and whether on the fulfilment of a condition or not; or
has the right to acquire such an interest under an option (whether the right is exercisable presently or in the future) and whether on the fulfilment of a condition or not; or
is otherwise entitled to acquire such an interest;
the entity is taken to hold that interest in the trust.
An entity is taken to hold an interest in the corpus or income of a trust even if the entity holds the interest jointly with another entity.
An interest in the corpus or income of a trust is not to be disregarded only because of:
its remoteness; or
the manner in which it arose; or
the fact that the exercise of a right conferred by the interest is, or is capable of being made, subject to restraint or restriction.
In this section:
income means income within the ordinary meaning of that expression.
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