Family Discretionary Trusts

When considering any structure, you want to assess how suitable it is for your and your circumstances. Things to consider, include:

  1. The status of the structure in relation to income tax, capital gains tax and land tax.
  2. The status of the structure in relation to asset protection.
  3. The level of control provided by the structure and succession planning considerations.
  4. The flexibility to change as circumstances might dictate.
  5. The initial and ongoing costs associated with setting up and running the structure.

Under a discretionary trust the trustee has the discretion to decide to whom to distribute the income and capital of the trust. The beneficiaries have the right to require the trustee to make the distribution decision but have no equitable interest in the income or capital of the trust estate which is therefore not accessible by their creditors. This structure is very popular with family businesses because of the flexibility they offer in income splitting and distribution as well as for asset protection.

If you are considering your a Trust, your Estate Plan, asset protection or business structures, it is important that you seek appropriate legal advice, so you are aware of your rights and where you stand. Contact Carter O’Neill Legal today to speak to our Gosford lawyers on (02) 4308 8892 or our Mona Vale lawyers (02) 9171 7339 to discuss any of your legal needs.