Australian Incorporation Services

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Discretionary Trust
(Or Family Trust)

Let AIS help you to create a stress free Discretionary Trust (or Family Trust) for you or your clients.

A Discretionary Trust (or Family Trust) provides you (as the Trustee) with the option to determine which beneficiaries are to receive the capital and income of the trust and how much they will receive.

The benefits of using a Discretionary Trust (or Family Trust):

  • Tax benefits
  • Asset Protection
  • Estate Planning
  • Land holdings

To create a Discretionary Trust (or Family Trust) simply complete the online or printable form and follow the directions.

Other types of trust you can find at AIS:

  • Fixed unit trust
  • Bare trust
  • Hybrid trust

Discretionary Trust

General Information

  • All property of the trust
  • Includes the settlement sum
  • Includes accumulated income
  • Defines the relationship between the trustee and the beneficiaries
  • The settlor and the trustee are the parties to the trust
  • Specifically sets out the duties and powers of investment of all parties involved
  • Creates the trust by ‘settling’ an amount of money or property on trust for the beneficiaries
  • Is the legal owner of the trust property
  • Is not the beneficial owner
  • Performs all transactions of the trust in its own name
  • Must sign all documents for and on behalf of the trust
  • Must obey the terms of the trust deed
  • Must act in the best interests of the beneficiaries
  • Has the power to remove and appoint trustees
  • The people (including entities) for whose benefit the trustee holds the trust property
  • There are usually a wide range of beneficiaries including companies and other trusts
  • Do not have interest in the assets of the trust
  • Are eligible to receive a distribution of income or capital at the discretion of the trustee
At the trustees discretion, determination is made each year as to which beneficiaries receives any income from the activities of the trust
The information provided here on Discretionary Trusts (or Family Trusts) should be taken as general in nature and does not constitute as legal advice. You should seek further independent advice regarding the legal, financial and accounting details unique to your company.