What is the benefit of a trust?
Trusts can be a great tool to allow flexible income distribution and family wealth creation. Assets owned by the trust will not change upon death or incapacitation if a corporate trustee is utilised.
Can trusts provide asset protection?
Yes. Assets that are owned by a trust cannot be touched by creditors if any beneficiary becomes bankrupt, as long as assets were transferred well prior to any proceedings.
Do I need to tell Centrelink about trust assets?
Yes. Centrelink will then determine your percentage control of the trust. Your share of the current market value of the trust assets will be asessed as being yours for Centrelink purposes. See Centrelink for further information https://www.humanservices.gov.au/customer/enablers/private-trusts-and-private-companies
OTC Tax & Accounting can help you arrange:
Make an appointment with our team today to discuss your cirumstances and options.