Family Trusts

Unlike a company, a trust is not a separate legal entity. Instead, it is an agreement between parties confirmed in the form of a trust deed. The trust deed is the legal agreement that will govern the operation of the trust and the role of each party to the trust.

A family trust will hold the chosen assets, such as a share and property to protect them from creditors and to distribute your dividends to your family members for more favourable tax outcomes. The trustee has discretionary powers to decide which beneficiary will receive the trust’s net income and capital gains each year and how much.

This provides control, security and confidence in keeping your assets with your chosen family members.

A family trust can be a powerful Estate Planning tool by giving greater control over how assets are managed and distrusted amongst beneficiaries both when you are running your business and when you are no longer around.

If you have a lot of assets or run a business, it is never too early to set up a family trust. And no, you don’t have to have children to create a family trust. You also get to choose who will be included within the trust deed, so you don’t have to feel obligated to include someone who you don’t wish to.

Trusts have 4 key parties:

• The Settlor: A solicitor, accountant or another qualified person that assists in setting up the family trust. This is the role we generally take on.
• The Appointer: the is the person who wishes to set up the trust (most likely you).
• The Trustee: the person who manages the trust day-to-day and distributes the assets at their discretion, and;
• The Beneficiary: the person/s or company who receives the benefits and entitlements of the trust.