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!