The creation and use of Trusts is common amongst the sophisticated investor. It can similarly be used by mums and dads to protect their assets, minimise exposure to risk and high tax rates.
As with all structuring, detailed advice should be taken before creation of Trusts usually in conjunction with your Accountant.
There are two major varieties of Trusts commonly used, they are Unit Trust and Family or Discretionary Trust. Simply they are:
- Unit Trust – allows set unit holding in the Trust and distributions are generally paid in these unit holding proportions; and
- Discretionary or Family Trust – where a class or group of beneficiaries has an entitlement under the Trust but the Trustee has a discretion to distribute.
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Property Law News
See attached news articles by OMB for more information and recent developments in this area of law: