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  • Profile photo of tysmeistertysmeister
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    @tysmeister
    Join Date: 2015
    Post Count: 3

    @mstrump

    There are a couple of different trust structures that you could use, a “unit trust” and a “discretionary trust” (or family trust). Without more information about your circumstances the following information is predicated upon the latter (which is suitable for tax optimisation within a family structure). The “discretionary trust” allows for income earned within the trust to be allocated to nominated beneficiaries at the discretion of the trustee. Thus if your spouse, who is a beneficiary is on a lower marginal tax rate you can stream income and realise a tax saving.

    Some things to bear in mind:
    – Any child under 18 who is a beneficiary under the trust will have any distributed income taxed prohibitively at the top marginal rate
    – If you are the only beneficiary you cannot also be the trustee, however you can incorporate a Pty Ltd company of which you are sole director to act as trustee
    – You will need a settlor to create the trust with a token amount (e.g. $10) and this should ideally be your accountant, lawyer or some other unrelated party (it cannot be a beneficiary). Once the trust is settled the settlor has no further rights or obligations.

    tysmeister

    • This reply was modified 9 years, 10 months ago by Profile photo of tysmeister tysmeister.
    • This reply was modified 9 years, 10 months ago by Profile photo of tysmeister tysmeister.
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