Providing an outline of the current landscape for family discretionary trusts in Australia, highlighting their enduring popularity as a tool for wealth management. Clients are initially attracted to family trusts for tax minimisation purposes, often based on what they have read or observed among peers. While distributing income or capital gains to beneficiaries on lower marginal tax rates is a well-known advantage, this is only part of the picture.
Family trusts also offer benefits such as asset protection, separating control of assets for family members with disabilities, and structuring business ownership. The importance of carefully evaluating the reasons for establishing a trust, cautioning that complexity often arises and that trusts are not solely about reducing tax.
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Rob Gilmour is the Managing Principal of Wealth Simplicity. The information provided should not be considered personal financial advice as it is intended to provide general advice only. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions.