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What is Trust By Leigh Barker

A trust is a business structure whereby the trustee conducts a business on behalf of the beneficiaries. As a trust is not a separate legal entity, a trustee must be appointed.

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What is Trust By Leigh Barker

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  1. Leigh Barker MWC Group What is Trust

  2. A trust is a business structure A trust is a business structure whereby the trustee conducts a business on behalf of the beneficiaries. As a trust is not a separate legal entity, a trustee must be appointed.

  3. A trustee.. A trustee can be an individual or a company whereas a beneficiary can be a person, a company or the trustee of another trust. The trustee will manage investments, maintain records, and manage assets and distributions. The overriding duty of a trustee is to adhere to the terms of the trust deed and to act in the best interests of the beneficiaries.

  4. The trust deed A trust is established by a formal deed that outlines how the trust is to operate. The trust deed defines the relationships between the trustee and the beneficiaries and sets out the duties and powers of the trustee. A trust distributes on an annual basis all profits to the beneficiaries who pay tax individually and provided that all profits are distributed a trust does not pay tax.

  5. A trust structure has both advantages and disadvantages and without identifying any specific type of trust they are generally seen to be • Asset Protection • The ability to pass wealth from one generation to the next • A reduction in liability where a company acts as trustee • The expense of establishing and administering • The inability to distribute losses • The limited life of the trust deed

  6. Prior to deciding on a business structure Prior to deciding on a business structure seek professional advice from an accountant, solicitor or business advisor to ensure that the structure selected meets your personal circumstances and business objectives.

  7. Leigh Barker Please note: Prepared by Leigh Barker MWC Group, Accountant, Portfolio Finance, Gordon, West Pennant Hills and Tangible Assets. Note that all content of this blog is general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance.

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