Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A trust is, for the purposes of this Division, a Territory trust in relation to the year of income if:
(a) the trust resulted from:
(i) a will, a codicil or an order of a court that varied or modified the provisions of a will or codicil; or
(ii) an intestacy or an order of a court that varied or modified the application, in relation to the estate of a deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate;
(b) the deceased person was a Territory resident immediately before his death; and
(c) either of the following subparagraphs applies in relation to the trust:
(i) the administration of the estate of the deceased person had not, before the end of the year of income, progressed to a stage that would give to any beneficiary a present entitlement to income that was derived by the trustee before or during the year of income; or
(ii) at no time during the year of income was any person presently entitled to income derived by the trustee during the year of income and at the end of the year of income no person other than a Territory resident had any interest, whether vested or contingent, in any income derived by the trustee during the year of income or could by the exercise of a power conferred on any person obtain such an interest.
(2) A trust is, for the purposes of this Division, a Territory trust in relation to the year of income if:
(a) the trust was created by an instrument (not being a will or a codicil) executed in a prescribed Territory by a Territory resident; and
(b) at no time during the year of income was any person presently entitled to income derived by the trustee during the year of income and at the end of the year of income no person other than a Territory resident had any interest, whether vested or contingent, in any income derived by the trustee during the year of income or could by the exercise of a power conferred on any person obtain such an interest.
(3) A trust is not, for the purposes of this Division, a Territory trust in relation to the year of income except as provided by this section.
(4) For the purposes of this Division:
(a) where 2 or more beneficiaries are presently entitled to shares of any income derived by a trustee (whether or not any of those beneficiaries is under a legal disability), the respective shares of that income to which those beneficiaries are so entitled shall be deemed to be held by the trustee upon separate trusts for those beneficiaries;
(b) if there is a share of any income derived by a trustee to which no beneficiary is presently entitled, the trustee shall be deemed to hold that share upon a trust separate from the trust or trusts upon which he holds the remainder of that income; and
(c) a reference to income derived by a trustee of a trust is a reference to income derived by the trustee in his capacity as trustee of that trust.