Help with Family trust

Any accountants here who can help me setup a family trust? The trust will be used to buy asx stock for dividends and may be some property in the future. But for now it will hold some shares for income distribution purposes.

I am based in Sydney.

 

There is a lot to address before you decide a trust assists you. Seek tax advice. The costs and issues may not benefit. I have worked in the area of advanced tax strcutures and generally recommend against a trust but it may work for you. Seek personal advice not a forum view.

 

What issues? I think my case is quite simple. There is some money sitting in an IP offset which can be better invested in LICs. Trust will help diverting the dividends to lower tax brackets. Isnt that right?

I understand I will have to do trust tax returns every year but cost is justified.

 

Thats the issue personal advice addresses. A trust wont divert income to a lesser tax bracket in all cases. And if it did could Part IVA apply ? Asset protection likely wont apply so what is the motivation ?Tax savings ?That where Part IVA could arise. Legal advice re the way funds get to the trust could also arise

 

Trusts are legal relationships and should only be set up by lawyers. You need lots of legal advice such as terms of the trust. Who should fill what role. Control and succession aspects. Asset protection aspects etc.

See my many tips on trusts in the legal section.

 

I dont really have a choice. Do I? If I only buy shares in the trust the asset protection issue does not even arise. Shares can easily be sold before any litigation

 

??? Then its cash and a personal asset. No protection if its income or borrowed from trust.
When you lend $$$ into the trust that a personal asset. That the asset risk. You have no asset protection if you lend to the trust, borrow from trust receive income or are owed income.

 

You really need legal advice on this
s 120 and s121 bankruptyc act and s34C Conveyancing act need to be considered.

 

Rather than setup a trust, you may be best to see Terry and for him to put together a framework for an overall structure. You will then be able to add and remove bits going forward.

Accountants have been found guilty by courts for preparing trust deeds and giving advice on trusts for structuring. It's legal advice and protected by the law. Also numerous instances of Accountants' PI insurance not covering claims where this has been done. There is nothing stopping someone studying law later in life if they are in one profession and want to provide this sort of advice (hi @TerryW).

Even though an accountant may be exceedingly knowledgeable, the lack of insurance coverage and the breaching of the Legal Profession Act is just not worth it.

 

I was a communist and mortgage broker before I become a lawyer later in life. I am surprised more people don't become lawyers - i mean people like accountants, financial planners, brokers even.

 

Agreed. It would make a whole lot of sense for those fields for people to be able to do both.

 

Communisim or communal living ?

 

I considered law but realised it was more overly regulated than accounting

 

the right way to approach setting up a family trust. First see a lawyer to get legal advice and proposed setup. Then take that to the accountant for tax advice?

 

Spot on. Or find a Terry W who can do both.

 

Shortcuts cost more than lawyers

 

I know an exceptionally bright lady who did a JD (in her 40s) after she sold her start-up for tens of milions. She said it almost killed her.

I guess not everyone has the intelligence or resilience to study law in their 30s,40s.

 

As batten said to me once when you become a lawyer every fee can be subject for a review by the supreme court.

 

Only those fees you charge through the law practice!