If you are considering setting up a trust structure to better protect your assets, it’s worthwhile thinking about what type of structure will best suit you and your assets. Each structure has it’s advantages and disadvantages and if not correctly set up, can have unfavourable effects in the future.
What is a trust?
A trust is an agreement whereby a person or company agrees to hold an asset for the benefit of others. The assets held within a trust can vary from property, shares to a business or business premises and so on. The trustee has full control over the assets held by the trust so it is important that they are entirely trustworthy and are able to manage all aspects of trust administration.
A trust may allow you to:
- Manage your assets more effectively;
- Legally minimise taxes by strategically planning the distribution of income, capital gains and assets to your beneficiaries, and
- Protect your financial assets as well as that of your spouse, children, siblings and other beneficiaries from unforseen risks and liabilities.
Whilst there are many types of trust structures, the most common types are the discretionary trust, the unit trust and the hybrid trust. Each structure has its own regulations so it is worthwhile seeking advice from a professional to ensure you are aware of any constraints the particular trust might contain.
Our tax accountants and tax lawyers can provide you with advice regarding the best trust structure for you. Call The Quinn Group on 02 9223 9166 or visit our website www.alltruststructures.com.au for more information and to submit an online enquiry.