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Trust Establishment

Start managing your income in a tax-effective way by establishing a Trust. With a trust, you can benefit from the ability to stream income to beneficiaries who are taxed at a lower income bracket.

Begin your journey to tax-effectiveness today with our expert Trust Establishment services.

Our accountants will make sure you get set up the right way and provide you with the information you need to manage your finances through a Trust.

Why should I establish a Trust?

A Trust is a great investment vehicle as it allows the Trustee to stream/distribute the net income to beneficiaries. You can also use a bucket company to cap the tax on the trust, making it an even more effective way of managing your finances.

You can also use a Trust to help protect your assets. To do this, you should use a corporate Trustee company setup instead of individual Trustees. This limits the risk of the Trust to the company and provides a layer of protection to the individual’s personal assets.

To establish a Trust, you will require the following items and their associated costs. Stamp Duty for Trusts also varies between each state.
  • Trust Deed: this specifies the rules under which the trust operates
  • Trust Deed Stamping - stamp duty varies between states
  • Trust ABN - Australian Business Number
  • Trust TFN - Tax File Number

Why Choose POP Business Trust Establishment

Experience tailored financial strategies that anticipate your needs, ensuring your business thrives with expert, one-on-one advice from our seasoned Chartered Accountants.

Grow without limits with our adaptable accounting services, designed to evolve with your business, providing cost-effective, comprehensive financial management at every stage.

Enjoy peace of mind with our clear, upfront pricing, ensuring no surprises, just straightforward, value-packed service for your tax and accounting needs.

Access instant, expert accounting support anytime, ensuring your business decisions are always backed by professional insight, minimising risks and maximising opportunities.

Transform chaos into clarity with our systematic approach, keeping your finances in impeccable order, freeing you to focus on what you do best.

Leverage AI and cutting-edge technology and creative strategies to stay ahead, offering you bespoke solutions that not only solve but innovate beyond traditional accounting practices.

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Our Process For Trust Establishment

Our Chartered Accountants are experts at establishing Trusts and providing the advice you need to make informed decisions on the right structure to use.
01

Initial Consultation

We start with an in-depth consultation to understand your business, goals, and challenges, ensuring we tailor our approach to meet your specific needs.
02

Strategic Planning

Based on our assessment, we develop a customised strategy that aligns with your business objectives, focusing on growth, profitability, and long-term success.
03

Implementation Support

Our team assists in implementing the strategy, offering guidance on key decisions and setting up processes to drive improvements.
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What did our clients say?

"Excellent service and execution. I have reached out to POP for help in preparation of company tax return and have been served with a variety of well tailored options along with great and patient customer service executed by Patricia. I will definitely remember to return to POP in the coming years."

Maciej Necki

"The team at POP Business have been amazing for Sprintlaw. We have received high-impact and high-quality strategic counsel and tax accounting service from them. They represent truly modern-day accountancy at its finest."

"POP Business was the perfect accounting partner for Quicka when it came to finding an accounting firm. As a new and growing business, they took the time to really understand our business model. Highly recommend them for new and growing businesses."

Frequently Asked Questions

A trust is a legal relationship between an entity (person, company, etc) who holds the property assets for and on behalf of another entity (person or company, etc), known as a beneficiary. The relationship between the parties is governed by a document known as a trust deed. Whilst a trust is not a separate legal entity, it still must lodge an income tax return and be registered for tax.

A trust can operate an active business or it can also hold investments such as investment properties, shares and cryptocurrencies.

Establishing a trust brings huge benefits:

  • It can help pass and preserve wealth efficiently and privately.
  • It can help reduce estate taxes
  • It helps gain control over distribution of your assets and income

A trust fund is the assets that a trustee holds on behalf of a beneficiary.  These assets can include cash, shares, property cryptocurrency and more.

These assets can be held in different types of trusts such as a discretionary family trust, unit trust or hybrid trust, each with its own benefits and methods of distributing assets.

  • The trust provides asset protection for the beneficiaries.
  • If the trust is set up correctly, the trust can limit the liability or risk of the beneficiaries who operate the business in the trust. 
  • That is, the trusts can potentially separate the control of an asset from the owner of the asset and can therefore protect the income or assets of the beneficiaries in the family group.
  • A discretionary or non-fixed trust can provide the flexibility to distribute the income and capital of the trust in the most tax effective manner for the beneficiaries. This is due to the fact that once the income or capital is distributed to the beneficiaries, they are then liable to pay tax on that particular income at their own individual marginal rates. 
  • Beneficiaries of the trusts are generally not liable for the debts of the trust. 
  • The trust can operate a business and be used in an active manner or it can be used for investment purposes and hold assets. 
  • The ultimate owners or beneficiaries of the trust are protected from disclosure in any case where the legal owners are required to be noted in legal documentation.

Australia recognizes the following different types of trusts:

  • Family trust: Family trusts are relatively easy to set up and give trustees the discretion to decide who receives distributions, and how often payouts occur.
  • Unit trust: Unit trust divides the trust property into units. Each beneficiary owns a given number of those units, and at the end of each year, he or she receives a distribution from the trust, based on the number of units held. 
  • Hybrid trust: Hybrid trust combines characteristics of both Family and Unit Trusts, whereby the trustee has the right to distribute trust income and capital among beneficiaries – like Family Trusts. However the income and capital is proportionally distributed – like Unit Trusts, based on the number of units each beneficiary holds.

Yes, you can use a trust to distribute your wealth to other family members or beneficiaries. 

However, as of February 2022, the ATO has implemented new rulings (Taxpayer Alert TA 2022/1) affecting distributions to adult children. In some cases, the tax rate for these distributions may be 47% rather than their individual marginal tax rate. Due to these changes, it is best to seek professional tax advice to ensure you are aware of the tax obligations for your trust.

Setting up a family trust is ideal for families with private businesses and other income-generating operations. Follow the steps below to set up a family trust:

  1. Decide upon original trust assests
  2. Appoint trustee(s)
  3. Determine Beneficiaries
  4. Draft Trust Deed
  5. Stamping
  6. Register as a Business
  7. Open a Bank Account
  8. Commence Trust Activity

The team at POP Business can complete this for you from $2,000 plus GST. Deed stamping costs are separate and vary depending on the state or territory you establish your trust in.

You can get started by simply filling out the enquiry form on this page.

You can also email [email protected]

The turnaround time will usually be within 1-2 days.

We are highly communicative and personalised accountants that are contactable by phone, email and video calls can be arranged.

We operate on the POP Difference - Proactive, Organised and Personalised solutions.

You can find POP Business’ office smack-bang in the middle of Sydney CBD, The Commons, 32 York St, Sydney NSW 2000 (open in Google Maps).

Get in touch

Start receiving Proactive, Organised and Personalised solutions for you and your business today.
Schedule a free consult to learn about the POP difference.

Online Enquiry

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