Join our investing community

New to setting up a discretionary trust

Discussion in 'Accounting, Tax & Legal' started by hellokah2012, 8th Mar, 2012.

  1. hellokah2012

    hellokah2012 New Member

    8th Mar, 2012
    Recently my family had decided to start up a small business specialized in selling smartphone/mobile/ipod casing which they have some contacts to get their supplies from.

    Since im studying accounting and heading towards the industry, i thought it would be good to establish the trust DIY-style and gain some experience while im at it i.e. Drafting a standardized trust deed from legal documents provider, and registering ABN, TFN all by myself etc

    I'm fully aware of the features and downsides of a discretionary trust however im not very familiar with the process of setting up the trust.

    This is what i've understand about establishing a trust from reading online in the past few days:
    1. Application for trust deed from a legal documents provider (e.g. Cleardocs)
    2. nominate appointor, trustee, beneficiaries etc. in trust deed and to have the trust deed executed by a third party
    3. After finaliziing the trust deed, forward the registeration of trust to the Office of State revenues (QLD); and pay the stamp duty (which in QLD is nil)
    4. Contact ABR and Apply for the trust's separate ABN , TFN, GST, as it is going to be operated like a business

    So far, this has being my brief understanding of the trust establishment process.

    If someone could help and enlighten me and/or fill in any missing gaps, and give any other general advice that would be much appreciated!!

    Thanks in advance
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006
    It is the settlor of the trust that starts the trust off by asking the trustee to hold some property for the beneficiaries. So the settlor would execute the deed as would the trustee.

    The settled property is usually just $10.