To set up a trust you require four things entities: a trustee,
settlor, principal and beneficiaries.
the settlor provides a settlement sum to start the trust
Which would be either a Unit Trust Family Trust or a Discretionary trust-
A unit trust meaning that the flow of income and asset ownership is
limited by the proportion held out of the total units in the trust.
whereas a discretionary trust can distribute income more freely,
family trusts are usually discretionary in nature.
The trustee manages the effects of the trust, all assets will be held
in the trustees name in trust for the x trust.
the principal has the ability to appoint a new trustee.
and the beneficiaries are those who obtain the benefit from the trust.
the deed is written with the above info filling in the blanks and the
document is signed
Trust deeds are availible for a reasonable price from
http://www.bhshelf.com.au/ without going to an expensive solicitor.
the next step will be to get a tfn/abn for the trust which you can do
for free on www.abr.gov.au which will let you open bank accounts in
the name of the trust.
to enable effective asset protection in australia, you have to note
that although these structures "in theory" protect your assets from
liquidation or aquisition upon you yourself becoming insolvent. This
doesnt work in practice, the corporate insolvency and bankruptcy laws
allow for liquidators and trustees of bankruptcy to apply to have any
aggreement entered into for the purpose of denying your assets to a
creditor to be void and this happens alot of the time. So youd be best
to have a better reason for putting your assets over in a trust than
asset protection.
This is not intended to be legal advice ,financial advice, tax advice
or advice of any kind, but rather consult a qualified tax or legal
practictioner for concrete answers. No liability is expressed or
implied. |
