If a beneficiary faces financial difficulty, the assets held by the corporate trustee are generally inaccessible to that beneficiary’s creditors. The decision-making process is documented through board resolutions, creating a clear audit trail.
Succession Planning with a Corporate Trustee for Your Family Trust
The arrangement is particularly attractive for business-owning families seeking to separate operational control from beneficial enjoyment while maintaining a clear line of succession. Considerations for Implementation Implementing a company as trustee requires careful consideration of initial setup costs and ongoing maintenance.
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. Asset Protection and Liability Management One of the primary advantages of utilizing a company as trustee is the enhanced layer of asset protection it provides.
Succession Planning with a Corporate Trustee: Securing Your Family Trust's Future
Families must weigh these expenses against the long-term benefits of security and control. Flexibility in Administration The use of a corporate entity does not imply rigidity; rather, it provides a flexible platform for trust administration.
More About Company as trustee for family trust
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