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Everything you need to know about Family Trusts. Parties to a Trust Settlor Trustees Beneficiaries...
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Transcript of Everything you need to know about Family Trusts. Parties to a Trust Settlor Trustees Beneficiaries...
Everything you need to know about Family Trusts
Parties to a Trust
• Settlor • Trustees• Beneficiaries
PART 1
What is a Family Trust?
From taxation perspective;
There should be a test individual and a family group.
• There should be a test individual, who would usually be the
Settlor or their spouse and the family group can include:
i. Any parent, grandparent, brother, sister, nephew, niece or child of the test individual or the test individual’s spouse; and
ii. A range of other family members, as defined in section 272-95 of Schedule 2 F of the Income Tax Assessment Act 1936.
Advantages • Better income distribution • Asset protection (eg:- at bankruptcy and relationship
breakdown)• Estate planning tool • Retirement planning tool
PART 2
Information required for a Trust • The names of the family members, their age and addresses • Who would be the Settlor (s) and who would be the trustees • The property and the value of property used to intestate the
trust • How to mange the trust • Bank accounts of the trust • When does trust property get vested
Pitfalls to avoid
• Beware of the implication of “Vesting”• Choosing Trustees • Investing trust property • Changes to trust deed deemed a resettlement • Assessing social security eligibility