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Discretionary Family Trust

Discussion in 'Business & Startup Investing' started by robt, 4th May, 2010.

  1. robt

    robt Curious Onlooker

    Joined:
    29th Mar, 2010
    Posts:
    4
    Location:
    Melbourne, VIC
    G'day!

    I'm looking into buying a retail business and it seems that Family Trust is the business structure that would most likely suit my situation best.

    What are involved in setting up a Family Trust? Should I set it up first or should I wait until I'm closer to the purchasing stage? At the moment I'm still looking around, found a few that I'm interested in, but are still waiting to see their financial details.

    Thank you.


    Regards,
    Rob
     
  2. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    Rob,
    There are other threads on DT's that you can read.

    If a DT is the right structure, most people will use an accountant to set this up although there are various online companies that can provide the documentation for you with instructions.
    You need to decide on the trustee structure - a corporate trustee or personal, where most will advocate a company as trustee. It carries a higher cost but greater flexibility.
    You need beneficiaries and make sure you have flexibility to add others later.
    You need a trust deed to cover all that you can imagine that the trust can do.

    As with any other legal entity, register it for an ABN, GST, tax file number etc.
    Good luck
    Greg