News

Look before you leap with testamentary trusts

Look before you leap with testamentary trusts

May 4, 2018

A testamentary trust works in tandem with a will, and is similar to a discretionary trust, with the major difference being it only takes effect upon the death of the person who made the will. The trust can be funded by some or by all of your assets, and by payments derived as a consequence…

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Streaming trust capital gains and franked distributions: An overview

Streaming trust capital gains and franked distributions: An overview

July 4, 2017

The ATO has stated that a trust’s capital gains and franked distributions can, if not prevented by the trust deed, be streamed to beneficiaries for tax purposes by making these beneficiaries “specifically entitled” (more below) to the amounts. This allows beneficiaries to offset capital gains with their capital losses, apply applicable discounts and, subject to…

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The process (and pros and cons) of “electing” to be a family trust

The process (and pros and cons) of “electing” to be a family trust

February 3, 2017

Trusts are an important and very useful concept for managing one’s financial affairs, as well as estate planning. Atrust is established whenever there is a separation of the legal ownership (for example, the name appearing on a land title) from the beneficial (equitable) owner of an asset (in other words, the person that a court…

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Trust essentials

Trust essentials

June 2, 2016

Trust structures and their use can often be misunderstood – we demystify some of the jargon. WHY USE A TRUST? Trusts are commonly used to protect assets, as property and other assets that are held by a trust have a level of protection from creditors. A trust can also maintain an estate until a beneficiary…

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Trusts 101: What are they, and how do they work?

November 8, 2013

One of the big motivations for considering using a trust will be to protect assets. Property and other assets can be moved into a trust for protection from creditors, to maintain an estate until a beneficiary becomes old enough to have legal possession, or isolate valuable assets from a trading company that may be more…

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Trusts: Their use and their structure

February 12, 2013

A major motivation for the setting up of trusts is asset protection. Valuable property and other assets can be moved into a trust to isolate them from being exposed to litigation, for example, for protection from creditors, or to maintain an estate until a beneficiary becomes old enough to have legal possession. The use of…

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Choosing the right business structure

September 8, 2012

Start up businesses need to make one important decision from the outset – what type of business set- up will suit you best? You’ve got a choice of four basic business structures – sole trader, partnership, company or trust. Of course, there are also more sophisticated structures out there, but most possible structures are essentially…

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Streaming classes of trust income

June 21, 2012

Various aspects of the tax law relating to trusts have been the subject of long-term uncertainty. Some clarification was provided in the 2010 year High Court decision in the Bamford case, however the Tax Office indicated that the judgement of the court raised further issues, which it outlined in a Decision Impact Statement. Background: Bamford…

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