Discretionary Trusts
Discretionary trusts (commonly known as "family trusts") are created to hold assets for the benefit of a class of beneficiaries. Family assets are often held in a discretionary trust, under a discretionary trust or family trust deed, nominating family members as beneficiaries of the discretionary trust. This allows the family to direct the use of and benefit from the assets without ownership of them. In addition, discretionary trusts (family trusts) may provide protection of assets in the event of bankruptcy, family breakdown or challenges to a will.
Our family trusts or discretionary trusts offer a broad discretion in respect of distribution of any income or capital of the discretionary trust. With a nominal settlement sum of $10.00 and the ability to undertake a wide range of potential commercial transactions, our trust deeds are current and flexible.
The provision of "A" and "B" class beneficiaries allows for an extremely broad and practical grouping of potential recipients. While the classes of beneficiaries are widely defined, the deed allows for the appointment of further beneficiaries by the Principal of the Trust without a resettlement occuring for stamp duty purposes (ie further beneficiaries are not "takers in default").
The terms of our family trust (discretionary trust) deed are regularly reviewed to ensure compliance with State and Commonwealth legislation, tax law and succession issues.
Click on the PDF icon below to download an order form for a Family Trust (Discretionary Trust).
You Can Download the latest version of Acrobat Reader from the link below.
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Order A Family Trust / Discretionary Trust And Receive
- One unbound copy and two bound copies of the trust deed for execution and stamping.
- The appropriate stamp duty form as required by the Commissioner of Stamp Duties.
- Letters of full explanation of the nature of the family trust and the general responsibilities of the trustee including a short list of suggested things to do on acquisition.
- A draft minute detailing the establishment of the family trust.
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For the Professional Advisor
Attributes of the Trust Deed
- Broad discretion exists in respect of distribution of any income and capital of the trust.
- There is a nominal settlement sum of $10.00.
- The ability to undertake a wide range of potential commercial transactions is given to the trustee. The trustee's powers and duties incorporate all the requirements of the major financial institutions including power to lease property and equipment, purchase securities,
develop and maintain properties and give guarantees. While there is a very simple procedure to amend the deed to incorporate any specific power, the powers given to the Trustee have proven to be sufficiently widely drawn to cover all normal commerical dealings.
- The provision of "A" and "B" class beneficiaries allows for a broad and practical grouping of potential recipients. While the classes of beneficiaries are widely defined, the deed allows for the appointment of further beneficiaries by the principal of the trust without a resettlement occuring for stamp duty purposes. Such further
beneficiaries are not "takers in default" and therefore comply with stamp duty rulings dealing with the resettlement of discretionary trusts / family trusts. Thus, they do not incur substantial stamp duty by including additional beneficiaries.
- The trust is structured to provide for a term of eighty (80) years from establishment although provision is made for the trustee to terminate the trust at an earlier date should it be so desired.
- There is a comprehensive index setting out all of the trustee's powers and duties.
- The trustee has the power to appoint a manager to control the trust assets. This assists in matrimonial matters where family assets are held by an array of trust entities and property settlements need to be negotiated. The family trust management provision allows the spouse who is to take "control" of the assets to obtain defacto control without incurring stamp duty liability.
- The provisions of each trust deed are drawn by our retained firm of solicitors who give consideration to contemporary requirements and developments.
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