A trust is an entity where a person (trustee) holds and governs property or other assets guided by the terms of a trust deed for the gain of another person or persons – the beneficiaries of the trust. A trust is not a separate legal entity like a company. All transactions in respect of the trust are undertaken by the trustee. Consequently, a transaction entered into by the trustee is a personal obligation.
Although the advantages and disadvantages of a trust vary between the different structures, some of the basic common benefits include:
- Reduced personal liability,
- Protection for your assets against various risks, and
- Flexibility of asset and income distribution.
There are some important things to consider before deciding a trust is right for you – like the complexity involved in establishing and administering the trust. It’s also necessary to make a wise decision about the type of trust – there are over twenty different types of trust, and they range from structures such as a discretionary trust, a hybrid trust, a unit trust and more. Each structure has its own range of advantages, disadvantages and regulations.
With so many different products available, it is important that you seek the advice of a professional to ensure you choose the right structure. To find out more information about the correct trust structure for your circumstance please contact The Quinn Group on 1300 QUINNS (784 667) or visit our dedicated website www.alltruststructures.com.au and submit an online enquiry.