Trusts
At Equity Trustees, we can help you establish up a trust for family or charitable purposes.
A trust is a legal agreement between you and those who you trust and appoint to look after your assets and affairs for the benefit of another person or party. Assets that you place in the trust are no longer legally owned by you.
Trusts are complex entities to administer and we have the specialist skills to undertake this challenging role. We understand the legal, investment and taxation issues surrounding trusts. We have well developed processes for exercising trustee’s discretion and an asset recording system that ensures beneficiaries receive current and clear statements about the trust’s assets.
Why you should establish a trust
Trusts are used for many reasons. Some of the most common are:
- Blended families, ensuring the assets are distributed as intended.
- Providing protection to beneficiaries who are unable to look after themselves or their financial affairs.
- Securing assets for the benefit of future generations.
- Tax and Pension Planning.
- Setting up a charitable trust or foundation. Click here to read more about charitable trusts and foundations.
When you should establish a trust
Trusts can be established when you are alive or by provisions in your will. Presently, income tax law favours trusts established in your will (usually called ‘testamentary trusts’) over trusts set up when you are alive.
Types of trusts
Trusts can be either fixed or discretionary. A Fixed Trust is one where the beneficiaries and or the distribution are certain and cannot be changed. The trustee must do what the person creating the trust directs. A Discretionary Trust is one where the trustees have a wide discretion as to how and when to distribute the trust funds amongst a designated class of beneficiaries. The intention is that the discretion will be exercised according to the needs of the beneficiaries.
Choosing a trustee
Choosing a trustee to administer the assets of your trust is a very important decision. The role of a trustee is regulated by legislation, common law and the deed or will which creates the trust and demands prudence, impartiality, efficient administration and common sense. Click here to read more about duties of a trustee.
Contact us
For more information about trusts or to make a no-obligation appointment to discuss your estate planning requirements, contact one of our Client Relationship Managers on 03 8623 5000, 1300 555 511 or click here.