Trust Lawyers

Lewis Kitson Lawyers have significant experience representing clients in a wide range of trust and family asset protection services and, for example, can assist with:

• Drafting, negotiating, and the provision of legal advice concerning Family Trusts, Unit Trusts, and Testamentary Trusts.
• Varying trust documents and removing and replacing trustees, appointors, and guardians.
• Advice and legal representation in relation to trust deeds, disputes, and breaches of duty.

A trust is a legal arrangement in which assets are held by a trustee for the benefit of another person, known as a beneficiary.

Trusts can be used for a variety of purposes, including safeguarding assets from third-party access, providing income for beneficiaries without giving them ownership or control, and avoiding conflicts of interest. Trusts can also be used to minimise taxation liability by distributing income among beneficiaries in a more tax friendly manner.

Because trusts can be tailored to achieve specific objectives, they are an increasingly popular tool for asset management/protection and estate planning. However, it is important to seek professional advice before setting up a trust, as the tax implications and wider considerations can be complex.

There are many different types of trusts, but the three most common types of trusts are discretionary family trusts, testamentary trusts, and unit trusts.

A family trust is a legal arrangement through which assets are held and managed by a trustee on behalf of beneficiaries. Family trusts are typically used to distribute income amongst family members and can provide significant tax benefits.

A family trust can be either fixed or discretionary.

• Fixed family trusts have predetermined beneficiaries who are entitled to a specific share of the trust property.
• Discretionary family trusts give the trustee discretion over how to distribute the trust income among the beneficiaries.

Discretionary family trusts are probably the most widely used type of trust structure because discretionary trusts provide maximum flexibility to the trustee. This flexibility can be beneficial in situations where the family’s needs or circumstances change over time (such as births, deaths, marriages, separations, and bankruptcies).

A testamentary trust is a trust that is established by a Will. Such a trust comes into existence on the death of the testator (the person who made the Will).

There are several advantages to testamentary trusts.

FLEXIBILITY

Like a family trust, the trustee has the discretion to distribute the income of the testamentary trust amongst the beneficiaries nominated in the trust. This means the trustee can make tax-efficient choices when distributing income, capital, dividends, or superannuation funds.

ESTATE PLANNING

A testamentary trust can provide greater asset protection for beneficiaries than would otherwise be provided under a simple Will.

By holding the title to the trust’s assets, testamentary trusts can help to protect assets against third party disputes, such as legal action, court proceedings or bankruptcy. Testamentary trusts can also be used to manage assets on behalf of minors or other beneficiaries who are not capable of managing their own affairs.

TAX BENEFITS

One of the main advantages of a testamentary trust is that it allows for income splitting among beneficiaries. This means that the income from the trust can be distributed to multiple individuals in lower tax brackets, reducing the amount of tax paid on the income earned from the trust.

If you are considering creating a testamentary trust, you should consult with an experienced trust and estate planning lawyer to determine whether a testamentary trust is right for you.

A unit trust is a trust that holds units in a managed investment scheme. The trust deed sets out how the units are to be held and how the trust property is to be managed and invested. The trust deed also sets out the rules for the distribution of trust income and capital among the beneficiaries.

The beneficiaries of the trust hold a fixed entitlement to the trust’s income, and they receive distributions proportionally to their unit holdings.

Unit trusts are commonly used for investment purposes, as they offer investors the ability to spread their investment risk across several different assets. For example, a unit trust may invest in a portfolio of shares, bonds, and property.

A trust can be used for a variety of purposes, including asset protection, beneficiary protection, and tax purposes. Trusts are also subject to several laws, including trusts law, taxation law, and superannuation law.

If you need advice on trusts, contact our experienced team of trust lawyers today.

A trust deed is a legal document that sets out the rules for the establishment and operation of a trust. The trust deed specifies the powers and duties of the trustee, the beneficiaries, and the Settlor (the person who creates the trust).

The trust deed also sets out the terms of the trust, including the duration of the trust, the nature of the trust property, and the rules for distributing trust income and capital among the beneficiaries.

An appointed trustee is a person or entity who holds the property on behalf of another person or entity. Trustees have a fiduciary duty to act in the best interests of the beneficiaries of the trust.

There are two types of trustees: individual trustees and corporate trustees.

• Individual Trustees: An individual trustee is a natural person who has been appointed to hold trust property on behalf of the beneficiaries.
• Corporate Trustees: A corporate trustee is a company that has been appointed to hold trust property on behalf of the beneficiaries.

The beneficiaries of a trust are the people or entities who are entitled to receive trust income and capital. The trust deed will set out who the beneficiaries are and how they are to benefit from the trust.