Frequently Asked Questions


1. What Trust can I register?

At company 123, we offer registration of the choice of 2 trusts.

- Discretionary Trust or sometimes know as a family trust.

- Unit Trust

Difference between the two trusts, Discretionary trust distribution is discretionary to the beneficiaries as decided by trustees.

Unit Trusts have a fixed distribution of net income/capital per the ownership of units by unit holders in a unit trust

2. What are tax benefits of a Trust?

Generally, trusts may be entitled to a CGT discount i.e 50% discount of a capital gains tax. This CGT discount is not available to corporate tax payers (i.e companies)

Please consult your accountant or get in contact with company123 and we will put you in touch with a tax specialist

3. Do I need to pay stamp duty when I set up a trust?

Well it depends on the state where the trust is executed.

Different stamp duty rates apply in different states. Rates of stamp duty: Vic $200; NSW $500 plus $10 per counterpart; NT $20 plus $5 per counterpart; TAS $50; WA, QLD & ACT – have no stamp duty payable (please check state rules for changes).

4. What Trust documents will I receive?

You will receive all legal documents to establish a trust including trust deed as well as minutes of meetings prepared by a qualified solicitor with over 35 years legal experience. Once you receive them please print and sign and pay stamp duty if applicable (see earlier questions on stamp duty and amounts)

5. Who is a Settlor in a Discretionary / Family Trust?

Settlor individual holds no legal ownership in a trust and simply acts as an individual to contribute a notional sum of capital.. usually $10 to create a trust. After this event, Settlor performs no active duty in a trust. 

Settlor and Beneficiaries cannot be the same person for legal reasons

6. Who is an Appointor?

Generally speaking this role is very important but is optional. Appointor holds a very important role of removing a trustee. Remembering that Trustee controls the trust, appointor essentially holds the ultimate say in controlling the trust.

You may wish to appoint an appointor or not to choose an appointor. We suggest you speak to a legal professional or contact us and we will put you in touch with a legal specialist.

7. Who is a Trustee?

Trustee is a legal face of a trust. it can be an individual or a company. Trustee controls and decides actions of a trust including decision how to distribute net income of a trust

8. Who is a beneficiary in a Discretionary / Family Trust?

Generally, a beneficiary is entitled to receive net income / capital of a trust.   

9. Should I choose a company trustee or an individual trustee?

Generally, company trustee is a better choice for asset protection than an individual trustee when trust is established.

 

10. Have we left you with questions?
Please contact us on +61 3 98320660
ASIC Agent

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