Benefits of a Family Trust

A family discretionary trust is a powerful tool for managing family wealth and running a family business. It enables families to transfer assets across generations, offering flexibility, control, and significant financial benefits.

Key Features of a Family Trust

• Discretionary Nature:
Trustees have the flexibility to decide how income and assets are distributed, unlike fixed trusts where distributions are predetermined.

• Trust Deed:
A formal deed establishes the trust and outlines its terms and conditions.

Roles and Responsibilities:
• Settlor: Establishes the trust and appoints trustees and beneficiaries.
• Trustees: Manage the trust’s assets and ensure compliance with its terms. Trustees can be individuals or a corporate entity.
• Appointor: Holds the power to appoint or remove trustees and oversee key decisions.

Advantages of a Family Trust
• Asset Protection:
Assets held in a trust are owned by the trust, not individuals, providing a layer of protection from personal liability or legal claims.
• Tax Efficiency:
Income can be distributed to beneficiaries with lower tax rates, reducing the overall tax burden and enhancing after-tax wealth.
• Simplified Estate Planning:
The trust deed establishes clear rules and roles, providing continuity and minimising disputes when managing family assets.

Other Considerations

While family trusts offer significant advantages, they can also involve complexities, such as:
• Administrative and compliance costs.
• Potential tax implications if not structured correctly.
• Limitations on accessing trust assets for personal use.

How We Can Help

We specialise in helping families establish and manage trusts tailored to their circumstances. Whether you’re looking to protect assets, improve tax efficiency, or plan for future generations, our team can guide you through every step of the process.

Contact us to explore how a family trust can support your family’s financial future.