Assets held by a trust are owned separately from the individuals that control them. This allows individuals to separate their business assets, their investments and their personal assets. This provides protection of the assets in the case of unforeseen circumstances, such as a business failure.
Succession & Estate Planning
Trusts are often used by family groups to transfer wealth from one generation to the next, avoiding unnecessary transfer costs and tax consequences
Distribution of Income
Trusts are commonly used for their flexibility of distributing income. In the case of discretionary trusts, the trustee determines how much income to distribute to each beneficiary on an annual basis, allowing family groups to balance their income and taxation positions
Capital Gains Tax
Like other types of income, any capital gains made by a trust is distributed to the beneficiaries. This means that individual beneficiaries still able to access capital gains tax concessions when their assets are held through a trust.
But a trust structure is not suitable in all situations. Your accountant or legal advisor will need to take into account all of your circumstances before recommending the ideal structure for your situation.
Importantly, the structure you have today may not be the structure you need in 10 or 15 years time. It is a good idea to review your structure every few years to ensure it meets your needs now and into the future.
Is a Trust beneficial in your situation or is yours set up in the best way? Make sure you receive the right information and have a chat with BLG Business Advisers today.