A Guide to Trusts
What is a Discretionary Trust?
A discretionary trust addresses the relationship in which a person (settlor) places assets under the control of the trustee for the benefit of a beneficiary or beneficiaries. It’s also known as a family trust.
Benefits of a discretionary trust:
- It can be a great tool for managing family wealth
- Can be used to protect family assets
- Offers tax benefits
- Valuable assets can be put beyond the reach of potential creditors
When establishing a discretionary trust there are four key roles that need to be filled: The Appointer, the Trustee, the Beneficiaries and the Settlor. Watch our video to learn more.
What is a Custody Trust?
In 2007 the Australian government amended self-managed superannuation fund (SMSF) regulations. Now SMSFs have the ability to borrow money in order to purchase property. That’s when custody trusts were born.
A custody trust is known by several other names including bare trust, custodian trust or property trust. These are all different names for the same thing: a limited recourse borrowing arrangement. Simply put, a custody trust is established to enable you to borrow money to purchase property in your SMSF. Watch our video to find out more!