Tax and Business Compliance Services

Trust Purchases and Setup

Trusts can offer significant benefits to trustees.  There are several types of trusts, including:

  • Fixed trusts.
  • Unit trusts.
  • Discretionary trusts.
  • Bare trusts.
  • Hybrid trusts.
  • Testamentary trusts.
  • Superannuation trusts.

 

Fixed Trusts

The trustee holds the trust assets for the benefit of specific beneficiaries in fixed proportions, which sees each beneficiary automatically entitled to his or her fixed share of capital and income.

Unit Trusts

Each beneficiary is identified by their unit holding in much the same way as shares are issues to shareholders in a company. Beneficiaries are usually referred to as unit holders. This is common in investment trusts and joint ventures, and beneficiaries can transfer their interests in the trust by transferring their units to another party.

Discretionary Trusts

Often called Family Trusts because they are associated with asset protection and tax planning for family members. Beneficiaries do not have any fixed interests in the income or property, rather the trustee has discretion to determine the flow of benefits of the trust.  The trustee has greater control and flexibility over the disposal of assets and income distribution in Discretionary Trusts.

Bare Trusts

In Bare Trusts there is only one trustee, one legally competent beneficiary and no specified obligations.  This is commonly used with a nominee shareholding where the share owner holds shares on behalf of someone else who may not want to be identified.

Hybrid Trusts

Such trusts have both discretionary and fixed trust characteristics, with the fixed entitlements to capital or income dealt with via “special units” over which the trustee has power to issue.

Testamentary trusts

Testamentary trusts only take effect upon the death of the testator. Normally, the terms of the trust are set out in the testator’s will and are mostly established where the testator wishes to provide for their children who are not of legal age.

Superannuation trusts

All superannuation funds in Australia operate as trusts. The superfund deed establishes the basis of calculating each member’s entitlement, and often the contributions that have to be made for a member, while the trustee will usually retain discretion over the fund’s investments and the selection of a death benefit beneficiary.

Establishing trusts usually requires a Trust Deed which is a legal document outlining the trustees, beneficiaries and management over income and assets, depending on the type of Trust being established.

PJT can help guide you over the best type of Trust for your needs, and arrange for the Trust Deeds to be prepared on your behalf.

We can hold the Deeds securely both physically and electronically to ensure a copy is always available.

Talk to PJT's specialists today about how we can help you and your business.

Our Team

What Client's Say

  • "PJT has always provided exceptional accounting service and advice relating to business operation, planning, taxation, investment and more."

    ,
  • "The principals and staff are always approachable and display a sincerity in your business and situation."

    ,
  • "PJT have made our life of running our own business much easier, knowing they are up to date with the latest in tax laws, and happy to help out with any queries we have

    ,
  • "PJT has always provided exceptional accounting service and advice relating to business operation, planning, taxation, investment and more."

    ,
  • "The principals and staff are always approachable and display a sincerity in your business and situation."

    ,
  • "PJT have made our life of running our own business much easier, knowing they are up to date with the latest in tax laws, and happy to help out with any queries we have not matter how small."

    ,

Read the Latest News

Improving Your Business Financials

The day to day operations will take most of a hotel owner or manager’s time and rightfully so. The more activity going on in the hotel, should mean an increase in the business’ bottom line. ...

Success Story - Hotel Client Restructures Finances

A regional hotel client had hit tough times.  From initial discussions it was clear the client needed a better understanding of actual business performance across their group. ...

Improving the Financial Facet of the Business

An emerging trend in today’s business is the opportunity to outsource – that is, transition some of the back-office operations to a third party service provider. Many business owners and managers have found it easy to do outsourcing ...

Business Financial Resolutions - How to Achieve Them

We’ve all set New Year’s Resolutions only to see another year go by and resolution not met.   That might work personally, but in business, our resolutions should be solid and must be met, especially when it comes ...