Hi All
We have had a Discretionary Family Trust set up for several months which up until now has had no income.
We have a Pty Ltd Company as Trustee. The company is only a Trustee, it does not trade.
The Trust has an ABN and a TFN. The Trustee has an ABN and an ACN.
Initially we opened a bank account in the name of the Company ATF the family trust.
I supplied both Trust and Trustee ABNs and TFN to the bank at the time.
The cheque book issued by the bank has the Trustee ACN shown on each cheque.We are in the process of putting a Lease Arrangement in place for a property owned by the Trust.
We are uncertain as to whether the ACN/ABN of the Trustee or the ABN of the Trust should appear on the Lease Agreement and subsequently the Tax Invoices.
The same question arises when being Invoiced for say a repair. Is the Payee the Trustee or the Trust?I have reread Trust Magic and Renton’s book but I am still unclear on this.
Anyone know for sure?
Regards
SMTM
Showmethemoney,
You should use the trust’s ABN never the company’s but you may need to use the company’s ACN to identify it.
Try to look at a trust/trustee relationship similar to being the executor of a will. If you were my executor and sold my house the contract would be in my name as that is still the name on the title deed. I can’t sign as I am no longer a legal entity. So you the trustee would sign and you would have to identify yourself. Similarly a trust is not a legal entity so the trustee co must sign.
Be careful to alway use ATF so there can be no confusion.Julia Hartman
[email protected]
http://www.bantacs.com.auJulia
Thanks for that.
SMTM
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