Family Trust and Tax
When it comes to tax, you’ll have most likely heard the term family trust being used, but what exactly does it mean and how can it be of benefit to you?
What is a Family Trust?
In general, a trust is basically a structure which allows a company or individual to hold an asset for the benefit of someone else. The individual in charge of the asset is called the ‘trustee’ and the people who benefit from the asset are called the ‘beneficiaries’. The types of assets held in a family trust can vary, but property and businesses are common in most trust structures. There is also an individual called the settler – this is the person who creates the trust and sets out the specific rules describing how these assets are to be managed. These specific family trust rules are detailed in a legal document called a trust deed. Put simply, a family trust is set up and used for the protection of an asset or tax purposes.
The Benefits of a Family Trust
There are many benefits that come with having a family trust including:
- Assisting in protecting the family group’s assets from the insolvency or bankruptcy of one or multiple family members
- Potentially help to avoid legal issues, including challenges to the will in the event of a senior member of the family dying
- Providing a means to pass different family assets onto future generations
- Providing a way to access favourable taxation treatment
- It is important to seek legal advice in regards to taxation and family trusts to ensure you’re getting the most out of your family trust and making it work for you.
Contact the Family Trust Experts at One Minute Tax
To find out more about how we can help you with family trust tax issues, contact One Minute Tax on (03) 8899 7506 or send an email to firstname.lastname@example.org today.