Hi Guys,
I amin the process of setting up a family trust and a charity and was wondering if a charity can be a beneficiary of a trust.
I have asked several legal and accounting professionals but they did not know or gave me the mirror politition answer.( i’ll look into it ).
Can anyone help?
PS: I already have someone setting it up for me ($235).Regards
FrankWhat’s to be gained ?
Who not pay a beneficiary the distribution and have the beneficiary make a donation, if over $2 and a registered charity I understand it will be deductable. i.e. a nill event.
Hey McHenry,
At the moment I donate a fair bit of money to charities that are not deductable gift recipients. That means my donations are not a tax deduction and that I have paid tax on that money when I’ve earnt it.
If the charity I set up is a beneficiary then there is no tax paid on that money because charities do not pay tax.Frank
PS: I already have someone setting it up for me ($235).This could be part of the answer – maybe go to another firm pay a bit more a get some good advice. If i was to guess I would say can’t see any reason why the charity can’t be one of many of the beneficiaries of the trust. cheers
I Buy Property http://www.cashflowproperties.co.nz
I believe that a Charity “can” be a beneficiary, worth checking with someone who fully understands the structures though
“Money is a currency, like electricity and it requires momentum to make it Effective”
Online Positive Cashflow and Renovating CalculatorsYes.
One of my Discretionary trust deed’s states that a charity is a beneficiary.
Charity is defined very broadly in the deed too, including
a) any body, corporation or unincorporated association being a church, religious institution, charity or benevolent institution and gift deductible bodies and any charitable purpose
b) the trustee (in its capacity as such) of any trust or settlement established for charitable or benevolent purpose
c) any charitable trust, society, authority, institution, church, religious order, person, entity which at the time of distribution of the income of the trust is exempt from income tax or at the time a tax deduction would be available for a monetary gift to that entity or person.
Terryw
Discover Home Loans
Parramatta
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Yes.
One of my Discretionary trust deed’s states that a charity is a beneficiary.
Charity is defined very broadly in the deed too, including
a) any body, corporation or unincorporated association being a church, religious institution, charity or benevolent institution and gift deductible bodies and any charitable purpose
b) the trustee (in its capacity as such) of any trust or settlement established for charitable or benevolent purpose
c) any charitable trust, society, authority, institution, church, religious order, person, entity which at the time of distribution of the income of the trust is exempt from income tax or at the time a tax deduction would be available for a monetary gift to that entity or person.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Thanks for your reply.Regards
FrankBeleive if your distribution is a gift then you will tick off the right boxes.
ATO does not like it so you may get a visit. My client did. You will need to prove payments are physically made.
No guts no glory
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