Discretionary and Family Trust Set Up By Expert Accountants
Whether you are looking for a Discretionary or Family Trust set up, or you are looking for ways to protect your assets, contacting a trust formation expert like our qualified Trust Accountants is a good option.
Trust formation arrangements can be set up for various reasons such as buying a property, running a business, protecting assets and more. Unlike a partnership or company structure which is generally straight forward, Discretionary or Family Trust set up is often more complex.
The main benefit of a trust set up in Australia is taxation benefits. A trust generally pays no tax as the profits are dispersed in a timely manner to the trust’s beneficiaries who are taxed according to individual tax rates.
How Do Discretionary or Family Trust Operate?
The Trustee operates the trust for the benefits of its beneficiaries and this forms a legal relationship between the trustee and the beneficiaries. The profit of the trust is shared among the beneficiaries but they do not have any say in how the trust is operated. It is essential that a trustee understands his or her legal duties and obligations. Additionally, the trust must have a Deed in place that details the conditions under which the trust operates. As you can see, trust setup and operation can be quite complex. Here at BBAS Accounting Services, we have Discretionary or Family Trust experts on hand to assist you in getting a trust up and running, as well as providing ongoing advice to Trustees and beneficiaries. We help many clients with trust management, compliance, tax reporting and more.
Trust set up Australia
The most common trust types in Australia are listed below and your business or personal needs will dictate the right type of trust that you need:
- A unit trust functions the same as a company but instead of the unit trust having shareholders it has unit-holders. The number of units held by the beneficiaries determines the profit-sharing ratio which means the more units you have the more profit you receive.
- A family trust as it is sometimes called is a trust set up by a person for the benefits of his or her family. The family members (trust beneficiaries) receive the profits and these profits are flexible.
- A discretionary trust is similar to a fixed trust. However, with discretionary trusts ther are no beneficiaries (or potential beneficiaries) obtain capital allocation/distribution or income unless the trustee decides exercise their discretion in favour of one or more beneficiaries.
- Hybrid trust combines the unit trust and the family trust in respect of beneficiaries. The profits are distributed on the number of units a beneficiary has as well as being flexible in nature.
Trust Accountant Brisbane or Interstate
The formation of the various type of trusts has many dimensions and the professional team at BBAS Accounting Services in North Lakes is experienced in all the different aspects of a trust set up. We find that the Trustee and beneficiaries may not all be in the same city, which is okay. We deal with clients all over Australia so we can easily arrange for teleconferencing or video-conferencing also works well.
Expert Accountants Providing New Business Setup Services
So, if you require a trust set up in Australia, no matter where you are located, we are here to help you. Our team is very patient and knowledgeable, so please don’t hesitate to call us on (07) 3886 1652 to discuss your requirements. Alternatively, if you complete the online form below and we will contact you.
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