DISCRETIONARY TRUST

Disclaimer:

NORFOLK CORPORATE SUPPORT is not a legal advisor. It is strongly recommended that you seek competent and qualified advice from a legal adviser or Accountant before ordering any Trust structures.

All Trusts supplied by NORFOLK CORPORATE SUPPORT (NCS) are prepared by a qualified Solicitor.

Setting Up a Discretionary Trust:

Discretionary Trusts have been popular as a form of business structure because they are a flexible means of distributing income and assets and therefore can provide some income tax savings by spreading the income among the trust members. Family assets can be held by the Trust. However, there are many reasons for setting up a trust which should be discussed in detail with your Accountant or Legal Advisor who can advise you on the structure best suited to your own personal situation.

Very briefly, the Trust is formed by executing a deed which documents the establishment of the Trust. The “Settlor” gifts the “settled sum” for the set up of the Trust for the benefit of another person or persons called “the beneficiaries”.

The Settlor is usually an independant person unrelated to Trustee or Appointor of the the Trust because “the settler” cannot be a beneficiary of the Trust.

The Settled Sum is usually a nominal sum of $10 to $20

The Trustee may be either a natural person or persons or a proprietary limited company. The Trustee determines to whom and in what proportion the income/assets of the Trust are distributed.

The Appointor has the discretionary power under the trust deed to remove and replace the Trustee. The Appointor has the Power to nominate a successor on his or her death and failing any such appointment, the personal representative of the Appointor will become the new Appointor.

The Specified Beneficiaries are usually the husband and wife or partner and so by definition the range of beneficiaries include any children and any related entities (any companies of which the specified beneficiaries are directors or shareholders).

Charities/churches:

A STANDARD Clause can be included to allow distributions to charities, schools and churches etc. without specifically naming each organization if you wish? However you must notify this request on your order form.

Stamp Duty on Establishment of Trust:

Stamp Duty varies from State to State in Australia from $20 to $200AUD. Please contact our office for up to date fees in each State at the time of ordering. (In Victoria $200 is the current cost)

Order Discretionary Trust