Trust Services
Trusts are commonly used in Australia for business, investment and asset holding purposes. A trust is a legal arrangement in which assets or business interests are held and managed by a trustee for the benefit of beneficiaries in accordance with the terms of a trust deed and applicable laws.
The suitability of a trust structure will depend on individual circumstances, business objectives, asset ownership considerations and taxation outcomes.
Trust structures may be used for purposes such as:
- Holding business or investment assets
- Asset ownership and risk management considerations
- Family or succession planning arrangements
- Investment or property holding purposes
Common Types of Trusts
Discretionary / Family Trust
A discretionary trust (commonly referred to as a family trust) is one of the more commonly used trust structures in Australia. Depending on the trust deed and circumstances, the trustee may have discretion regarding the distribution of trust income or capital to eligible beneficiaries.
Unit Trust
A unit trust is a structure where beneficial interests are divided into fixed units held by unit holders. Income and entitlements are generally determined in accordance with the units held and the trust deed.
Hybrid Trust
A hybrid trust may combine features of discretionary and unit trust arrangements. The suitability of this type of structure depends on individual objectives and circumstances.
Who May Consider a Trust Structure?
A trust structure may be considered by:
- Family-operated businesses
- Property investors
- Small business owners seeking a separate ownership structure
- Individuals or families undertaking investment activities
- Businesses considering succession or asset ownership planning
Information Commonly Required for Trust Setup
Depending on the type of trust and circumstances, information commonly required may include:
- Proposed trust name
- Trustee details (individual or company trustee)
- Beneficiary information
- Business or investment purpose of the trust
- Registered address and contact details
Considerations When Establishing a Trust
Depending on circumstances, matters to consider may include:
- Taxation and reporting obligations
- Trustee responsibilities and compliance requirements
- Asset ownership considerations
- Ongoing administration and operating costs
Corporate Trustee Considerations
In some circumstances, a company may be established to act as trustee of a trust (corporate trustee). We can assist in understanding whether this may be suitable for your circumstances.
Ongoing Trust Obligations
Depending on circumstances, trusts may have ongoing taxation, reporting and compliance obligations, including annual trust tax return lodgements and other ATO reporting requirements.
We can assist in understanding and managing these obligations.
Our Trust Setup Services Include
We can assist with:
- Trust establishment and registration assistance
- Corporate trustee company registration (where required)
- ABN, TFN and GST registrations (where applicable)
- Assistance in understanding trust taxation and reporting obligations
- Business structure considerations based on your circumstances
If you would like to discuss your circumstances or arrange a consultation, please contact us on 0405 735 555 or email rs@nexoaccounting.com.au. We would be happy to assist you.