Discretionary Family Trusts

What is a trust?
A trust in its simplest form is when one person holds property for another person. It is considered an entity for tax situations, but unlike a company, the law does not consider a trust to be a legal person.

How long can a trust exist for?
According to perpetuity rules, discretionary, unit and hybrid trusts can only be in existence for 80 years, which is normally enough to last one person most of their lifetime. On the other hand, charitable trusts are perpetual and can last forever.

What is a Discretionary Family trust?

A discretionary trust (often referred to as a family trust) is where assets are held by the trustee for various people who are named as beneficiaries of the trust. The trustee has the discretion as to which beneficiaries receive the income each year and which beneficiaries receive the capital.

How are trusts used?
Trusts can be used in a number of different ways by a number of different people.
- Protection of assets
- Tax minimization
- Succession planning
- Provision for disabled children

 

At Highland Financial we work with clients’ everyday to help protect the assets they have worked hard to build and we can do the same for you. Contact us today and make appointment.

Phone + 61 7 3010 9291, or Email: advice@highlandfinancial.com.au