Family Trust Lawyers

A family trust, also known as a discretionary trust, is a legal arrangement used to hold a family’s assets or to conduct family business. The assets or property are managed by a trustee, for the benefit of the beneficiaries (the owners of the trust assets). The beneficiary or beneficiaries receive the trust’s annual net income and capital gains.

This structure offers flexibility in the distribution of income and capital among the beneficiaries, making it a popular choice for wealth management, asset protection, and tax planning with the assistance of your accountant.

It’s important to note that a family trust does not exist as a separate legal entity. Rather, it constitutes an agreement involving two or more individuals, typically connected through family ties or marriage.

Contact us today for a no obligation initial 15 minute consultation with one of our family trust lawyers.

Anyone can set up a family trust provided they have the legal capacity to enter into a contract but you should seek the assistance of ROSS & Lambert to ensure that your trust is set up in accordance with the law and meets your objectives.

There are several steps involved in setting up a family trust in Australia. In general, the steps to setting up a family trust include:

1. Set your objectives – do you want asset protection, estate planning, tax efficiency, or something else?
2. Select your trustee(s) – the trustee can be one or more individuals (e.g. family members) or a corporate entity.
3. Choose your beneficiaries – the people that will benefit from the trust, money, or property.
4. Draft a discretionary trust deed – this becomes a binding legal document.
5. Settle the family trust – settlement is the necessary legal process to establish your trust.
6. Trustee signs the deed – this may need to be done in a formal setting.
7. Pay stamp duty – the costs of stamping your discretionary trust, and is a one-time tax paid on the establishment (settlement) of the trust.
8. Apply for ABN and TFN.
9. Open a separate bank account.

However, some things may be complex and you want to ensure the trust set up is legally sound. It’s important to seek guidance and counsel from experienced family lawyers in Adelaide – and that’s exactly what we offer.

In Australia, practically anyone can establish a family trust, provided they have the legal capacity to enter into a contract.

Contact us today for a no obligation initial 15 minute consultation with one of our family trust lawyers.

The cost to set up a family trust in Australia can vary widely depending on several factors, including the complexity of the trust structure, the professional fees charged by legal and financial advisors, and any state-specific costs such as stamp duty.

Cost considerations include:

• Legal fees for drafting a trust deed
• Financial, legal and/or accounting advice
• Stamp duty, which varies by state and territory
• ASIC registration fees, should you appoint a corporate trustee
• Ongoing accounting and tax service fees.

The disadvantages of a family trust can include set up costs, the ongoing accounting fees  and tax reporting obligations and fees. 

There are costs involved in creating a trust fund as well as ongoing accounting fees. 

There are tax obligations that trustees must manage to ensure compliance with tax laws. These include lodging financial statements,  an annual tax return, and taxation on income paid to beneficiaries. 

Another disadvantage is personal liability for any debts the trust incurs. However, this risk can be managed by including an indemnity clause in the trust deed and appointing a corporate entity as the trustee instead of an individual.

The trustee is responsible and liable for the operation of the Family Trust.   A trustee can be an individual(s) or a company which is specifically registered to act solely as trustee of the trust.  

When it comes to setting up a family trust, it is recommended to have a lawyer set up a family trust to ensure it is legally sound. 

While both lawyers and accountants are involved in setting up trusts, with lawyers drafting the legal documents and advising on compliance, and accountants handling tax implications and financial planning, it’s however always recommended to seek legal advice to protect your interests and reduce the likelihood of disputes or legal issues.

Contact us today for a no obligation initial 15 minute consultation with one of our family trust lawyers.

Ross & Lambert Partners LLP provide legal advice in a variety of areas including family law, sales of business, building and construction law, drafting agreements, wills and estates, debt collection, property law, residential leases and commercial litigation.