Discretionary Trusts and Unit Trusts
Rayners Lawyers can assist you with structuring your business or investments through discretionary and unit trusts.
Trusts can be used:
- as a tax minimisation strategy
- as a means of providing shared income for family members
- to minimise the risk of creditors making a claim against your assets and
- to place valuable assets out of the direct control of individuals at risk of making poor decisions that may affect involved stakeholders.
One type of discretionary trust is a family trust. A trustee (usually a company incorporated for this sole purpose) is elected to hold assets in their name for the benefit of a group of beneficiaries. Appointing a corporate trustee is beneficial in terms of avoiding complications associated with the death of an individual trustee, or in circumstances where an individual trustee is declared bankrupt.
Rayners Lawyers can assist you with:
- drafting trusts
- reviewing trusts to ensure they comply with financial and trust-related legal requirements
- advice for your accountant to make suitable arrangements
- advice for structuring your trust in ways to minimise the chance of claims being made under family law or debt recovery proceedings.
A ‘Testamentary Trust’ (or ‘Will Trust’) is simply a trust that is created under the terms of your Will.
Common reasons for establishing a Testamentary Trust include:
- controlling and protecting family wealth across generations;
- income tax and capital gains tax efficiency;
- providing a workable, flexible framework for a beneficiary who is either incapable of managing their own affairs or vulnerable to exploitation;
- creating a structure that allows a spouse or partner to benefit during their lifetime whilst ensuring that children (including those from a previous marriage) are financially provided for in the long term;
- creating separate Testamentary Trusts for each child or limb of the family which can then be independently managed and administered;
- postponing the entitlement of a young child or adult until they are older or have settled down in life whilst allowing money to be spent for their benefit in the meantime; and
- providing an additional layer of protection for family assets from potential risks of bankruptcy and family breakdown.
For further information, please contact Kirsty Rayner directly on 0422 33 88 10 or by email [email protected]