Tax Efficiency and Succession Planning While the primary driver is often protection and continuity, a company as trustee can offer significant tax optimization opportunities. Ongoing costs include annual review fees, accounting services, and potential audit requirements.
Asset Protection Corporate Trustee Family Trust: Securing Your Family's Wealth
Flexibility in Administration The use of a corporate entity does not imply rigidity; rather, it provides a flexible platform for trust administration. If a beneficiary faces financial difficulty, the assets held by the corporate trustee are generally inaccessible to that beneficiary’s creditors.
Families must weigh these expenses against the long-term benefits of security and control. It must maintain distinct financial records, file annual returns, and adhere to accounting standards that surpass those required for individual trustees.
Asset Protection with a Corporate Trustee for Your Family Trust
Furthermore, the corporate structure limits the liability exposure of the trustee directors, provided they fulfill their duties diligently and in accordance with the relevant Corporations Act and trust instrument. The distribution of income can be strategically allocated among beneficiaries to minimize the overall tax burden, leveraging lower marginal rates.
More About Company as trustee for family trust
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