Effective positioning of a bucket company with in family trust structure

[QUOTE=" The same company is acting as trustee of the trust and being a beneficiary = not good, if that is what you mean.[/QUOTE]

Why is that? What are the potential pitfalls? My accountant suggested the same thing. Thanks

 

Why is that? What are the potential pitfalls? My accountant suggested the same thing. Thanks[/QUOTE]

s100A ITAA36
asset protection
potentially excluded as a beneficiary.

 

s100A ITAA36
asset protection
potentially excluded as a beneficiary.[/QUOTE]

If the corp Trustee has 3 directors and if for whatever reason a bank takes over one seat, the majority vote can dictate not distributing to the corp trustee as a beneficiary and then the successor appointor of the trust can ask to change the trustee thereby protecting Assets. In therms of being excluded from being a beneficiary the named family members who are the same shareholders are listed as beneficiaries as well - so they should be able to get distributions? Or did I completely miss something here? Thanks Terry

 

why would a bank take over a director position?

I am not sure I understand what you are saying, but have you had legal advice?

If a director becomes bankrupt it has no effect other than the bankrupt being disqualified as a director. It is the bankruptcy of a shareholder that you need to worry about. BUt if the shareholderi s a trustee the shares won't fall into the hands of creditors. If they were the beneficial owner of the shares then creditors could stand in their shoes and excerise powers of the shareholder - and try to change the directorship that way.
But before this had happened the appointor owuld have just changed the trustee to another company

 

Sorry, I meant shareholder my mind was a bit scattered as the directors and shareholders are the same people. Thanks Terry you confirmed what I was thinking. Only received advise from a CA not any lawyers as yet. Thanks