A Family Trust is a discretionary trust commonly used in tax and asset protection planning. The trustees have absolute discretion as to what to distribute, when and to which of the family members (although they can be guided by a separate letter of intent).
The discretion that trustees have means that it is uncertain as to who will eventually own the assets currently within the trust. That may be beneficial, for example, delaying when tax is payable and who pays it.
Standard Unit Trust
The beneficiaries of a Unit Trust are not entitled to receive specific assets within the trust, but rather have proportional units of the whole trust. The concept is similar to owning shares in a company. However, the trust is constituted under a trust deed, and the Unit Holders have a direct beneficial interest in the assets held in the trust.
A Unit Trust is usually used where there is a large asset within the trust (such as land) that cannot be easily divided into smaller assets. Units provide a way of exchanging shares of the asset without having to divide the asset itself.
Fixed Unit Trust
If the assets in trust include land or property located in New South Wales, then a Fixed Unit Trust may receive the benefit of the applicable tax free threshold for land tax purposes. A Standard Unit Trust cannot.
Multi Class Unit Trust
A Multi Class Unit Trust Deed creates up to 13 classes of units, each having different rights relating to entitlement to capital and income, and to voting on trust matters. These can be customised to suit your circumstances and needs.
A Hybrid Trust Deed is a Multi Class Unit Trust Deed that combines Family Trusts, giving the advantages of Family Trusts with the flexibility of Unit Trusts.
A Bare Trust Deed allows a Superannuation Trust to borrow money to acquire other assets, such as real estate, shares in listed public companies, units in a Unit Trust or alternative investments such as art or wine.
All Specialty Trust Deeds are prepared on an individual basis for the purposes required. A specialist solicitor at Patricia Holdings will contact you to ascertain your instructions and then draft a custom trust deed.
Our partner, Patricia Holdings can set up an extensive range of trusts in Australia for all purposes. All the deeds are prepared by a specialist solicitor. You can choose the state of jurisdiction that is most suitable for you.
Patricia Holdings is an agent for the New South Wales Office of State Revenue and for the Victorian State Revenue Office. If your trust deed has NSW or Victoria as the state of jurisdiction, you can choose to have your trust deeds stamped as well.