From williambuck.com: Medical professionals continue to find trusts beneficial for managing income distribution, asset protection, and tax efficiency, despite recent scrutiny from the ATO regarding unpaid present entitlements.

The Bendel v Commissioner of Taxation case clarified that unpaid UPEs do not automatically constitute loans under Division 7A, though the ATO disagrees and is pursuing an appeal.

Medical practitioners should strategically use trusts while ensuring compliance with ATO guidelines to avoid penalties related to unresolved UPEs.