Operating a business as a discretionary family trust

Many clients find it difficult to understand the concept of a discretionary family trust and the relationship with the trustee of that trust, especially when the trustee can be a company for asset protection reasons.

In Australia, a discretionary family trust is a common structure to run a business out of because it offers many taxation advantages, for example: the flexibility to distribute profit to different beneficiaries, (including streaming of dividends to a particular individual(s)), the ability to access significant capital gains tax concessions and stream those capital gains to a particular beneficiary.

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