Not only can a trust decrease your tax but it can cover your assets against losses from divorce, bankruptcy or the claims of creditors. If drafted properly, it can act like a wall that comes down to protects the individuals’ property.
By channeling your income through a trust, the trust money can then be used to buy income-producing assets (rented houses or offices), interests in partnerships or company shares.
In a fully discretionary trust, the beneficiaries do not have any set interest in the trust property. They only have a mere expectation to be considered when the trustee distributes the income or capital of the trust. The assets inside are safe from claims brought against the beneficiaries.
If you have further questions, please contact frank@franklaw.com.au
This is not legal advice.