All Topics / Legal & Accounting / Trust Beneficiaries

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  • Profile photo of CiaCia
    Participant
    @cia
    Join Date: 2004
    Post Count: 11

    Questions:

    Can siblings and Aunts be beneficiaries of Discretionary Trusts for income from an IP. I do not have partner & family as yet ?

    What about overseas beneficiaries ?

    Profile photo of CastleDreamerCastleDreamer
    Participant
    @castledreamer
    Join Date: 2003
    Post Count: 288

    If its a family trust, you can set it up to say any family you like I think. Check with your accountant or lawyer.
    Cheers
    CD

    CastleDreamer

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The deed is usually worded so that any of your relatives can be beneficiaries.

    Non residents can be beneficiaries, but there are special tax rules for non residents so they may be charged higher tax – about 30% I think.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of austiniaustini
    Participant
    @austini
    Join Date: 2004
    Post Count: 15

    Hi,

    My understanding is that with most standard trust deeds this should be no problem. It is easy for this to be done.

    As mentioned in another post I just responded to be aware of restrictions that can arise if you have losses in the trust and want to carry these forward. If this situation arises you will have to make a Family Trust election which can result in the exclusion of benificiaries other than the “immediate” family group. So from memory I think this would exclude your aunt. However your parents and children should still be included in the family group. Or should I correctly state that you can still distribute to individuals outside this family group but will be hit with the highest tax rate. So you just wouldn’t do it in reality.

    Cheers – Gordon

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