Setting up a Family 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.

Trusts can be used to hold a business or the assets of a business, or they can be used to split the ownership and control of assets. One of the main uses of trusts is to spread income for people so they have the opportunity to pay less tax.

How is a trust structured?
A trust structure is an extremely flexible structure. It is an entity that holds things like property, assets or even a business. A basic trust structure contains three elements:

1. The trustee – this is the person who holds the assets
2. The beneficiary – this is the person who is entitled to the property/asset held by the trust.
3. The trust fund – this is the asset

The Trust Deed is the document that sets out the obligations and rules of the trust and is administered by the trustee on behalf of the beneficiaries.

How can I set up a family trust?
The easiest way for you to set up a trust is to get a qualified professional to do it! You should speak with a financial planner, an accountant and a solicitor as each professional has their own area of expertise and a different involvement in the process of setting up a family trust. Highland Financial can start this process and help organize the meetings. We can work with your existing advisors or find the right people if you don’t already have them in your team. This will ensure that your trust is set up correctly from the beginning.

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