Trust setup question

Discussion in 'Accounting & Tax' started by jntxkairqkrc, 5th Jul, 2020.

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  1. jntxkairqkrc

    jntxkairqkrc New Member

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    Hi,

    I've just setup and stamped a family trust as an individual trustee and appointor.

    The cleardocs site has a DFT Minutes & Resolutions document (Family Discretionary Trust Minutes, Resolutions - distribute income etc), do I need do have any of these minutes?

    • establishment of the trust;
    • open a bank account for the trust;
    • appoint an appointor
    I thought the only additional setup document required is the consent to act as trustee, are any/all of these required?
     
  2. Trainee

    Trainee Well-Known Member

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    It's a sign of something when you need to ask these sorts of questions.

    And questions you might not know to ask. Yourself as appointor and trustee? Who is the beneficiary?
     
  3. jntxkairqkrc

    jntxkairqkrc New Member

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    Myself as the named beneficiary (as I am single) with the standard class of beneficiaries. The trust will only be investing in shares (albeit private).
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    The appointor is appointed by the deed usually. Trustee needs to do resolutions.
    Watch out for the cleardocs deed.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    And dont forget stamp duty on the deed.

    Not quite sure of the asset protection or merits of this trust.
     
  6. Mike A

    Mike A Well-Known Member

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    is cleardocs organising the stamping of the deeds for the relevant State ? This must be something new.

    Who is applying for the TFN ?
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yes they do now. Some states. Cleardocs also offer the ABN , TFN but I cant fathom how they do that since its a tax agent service and easily messed up. And VERY costly to fix (which is how I found out when some approached me.

    Both are paid services. Cheap. As expected.

    Did you know that business.gov.au now allows a company (incl public co !!!) to be formed without any legal docs? :eek: :eek: Select your registrations - Business Registration Service
    I nearly fell over. I have had several new clients do this. I wont take them on and as its a complex legal issue I wont assist. We charge a high fee to fix all the expected mistakes for tax registrations too. When I worked at MGS ASIC were canvassing doing this prob 10 years ago and after first session realised they had a massive legal issue and binned the idea. (Many law firm smashed them )....Some numb nuts has actually now done it (badly).

    When forming a company the default share class is FOUnders. I cant even find a constitution that allows for this class of share let also replaceable rule acceptance - How can it then issue Ordinary shares ?? Or become registered in the first place ? Fat lot of good it is. No Corporations Act compliance at all.
     
  8. Mike A

    Mike A Well-Known Member

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    yes the ASIC registration is one that has been discussed in an accountants group im a member of with over 2,500 accountants. Most won't touch them.

    So you end up with a cheap company that not many professionals will touch as it has too many issues.
     
  9. Carlossss

    Carlossss Member

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    do you have to get the trust deed setup and stamped in your state of residence? i note the costs vary from 0-$500 for stamping depending on the state...
     
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Carlossss likes this.
  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Cleardocs and Maddocks law issue a specific caution about doing this.
     
  12. Carlossss

    Carlossss Member

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