Types of Trusts
New SMSF
Features of the various Trusts
There are many types of trusts and at times tax advisors and trustees are faced with a situation where it is difficult to decide which structure will be best for the transaction. Below we have summarized the features of the various trusts that can assist you to decide a suitable structure.
| Features of our Trust Deeds | Discretionary Trust | Unit Trust | Fixed Unit Trust |
|---|---|---|---|
| Trustee has discretion to distribute profits | √ | x | x |
| Trustee has discretion to distribute capital | √ | x | x |
| Entitlement of Unit Holder (beneficiary) to income is fixed | x | √ | √ |
| Entitlement of Unit Holder (beneficiary) to capital is fixed | x | √ | √ |
| Unit holder (beneficiary) can force Trustee to dissolve the trust | x | x | √ |
| Trust is entitled to avail NSW Land Tax threshold | x | x | √ |
| Unit Holder can force the trustee to call a meeting with 2/3rd unit holding | x | x | √ |
| Trustee can carry forward Income after paying tax | √ | √ | x |
| Trustee can carry forward loss | √ | √ | √ |
| Trustee can distribute loss to Unit Holders (beneficiaries) | x | x | x |
| Trust have a perpetuity period (Not Applicable in SA) | √ | √ | √ |
| Beneficiary’s interest in the trust is represented through the units held | x | √ | √ |
| Suitable for more than one family group | x | √ | √ |
| Allowability of interest on money borrowed to invest in the trust | x | √ | √ |
| Introduction of more beneficiaries | Might lead to resettlement of trust | Can be done through issue of fresh units or transfer of units | Can be done through issue of fresh units or transfer of units |
| Redemption of units | NA | At the discretion of trustee | Unit holder can demand the redemption |
| Beneficiary’s interest classified as property | x | √ | √ |
| Degree of asset protection | High | Low | Low |
| Potential to include huge range of beneficiaries as class beneficiaries even future spouses and unborn children | √ | x | x |
Subject to other conditions
CLIENT TESTIMONIALS
Trustdeed.com is an extremely user friendly and efficient website. It is so easy to navigate around. The team at trustdeed.com is also very helpful and I would like to sincerely thank them all for all their help, support and guidance and for always going above and beyond to help out. Best customer service I have encountered. 
Ushma Joshi | Financial Adviser
BSc Actuarial, MCom FP, AFA (Aff)
Authorised Representative of Synchron AFS License No 243313
AR Number: 414118
Excellent. Easy to use. Streamlined. Saved a lot of time. Easy and simple to follow. Highly recommended
Ray C,
Perth WA
JOIN US
Learn how to grow your wealth and pay less tax.
Our Wealth Creator writers reveal the secrets of how to easily reduce tax and create more wealth. Once you learn these simple but ingenious strategies, it will be like giving yourself a 20% pay rise, tax free!
More Information
How to use our service?
Phone : 02 9684 4199
Email : sales@trustdeed.com.au
Our trust deeds
We will arrange for you to speak with Batallion Legal, free of charge
Specific legal advice
Batallion Legal will charge for this service. Please visit http://www.batallion.com.au
Register/Login Now
New User
To purchase anything from our website you need to register, once and for free.
Register NowExisting User
Log in now to order a new document
Login
Propriety Company |
SMSF Trust DeedSMSF BorrowingSecurity Trust Deed - Bank Lender Security Trust Deed - Related Party Lender SMSF Borrowing - Property Conveyancing Actuarial Certificate |
SMSF Related DocumentsCommence Account Based Pension Convert Existing AP to Account Based Pension Lost SMSF Deed - Deed of confirmation Delete member(s) from your SMSF Change Trustee from Individual To Corporate Change Trustee from Corporate To Individual |
TrustsDiscretionary Trust (aka Family Trust) Trusts InformationProperty ToolsJobs |