FAQ
Frequently Asked Questions
What is a trust?
According to the Australian Taxation Office, a trust is an obligation imposed on a person or company to hold property for the benefit of another, known as the beneficiary.
Do I need a trust?
Trusts can be established for many different reasons and can provide many benefits. Some of these include:
- If you have a family member who is living with a disability, or an impairment leaving them unable to manage their affairs
- If you would like to protect assets for family members who are under the age of 18
- If you or a family member is at risk of divorce, bankruptcy or litigation; and
- If you would like to enjoy tax savings and benefits from trust property
What are the benefits of appointing a trustee company, as opposed to an individual?
- Perpetuity
- A Trustee company does not die. The company has perpetuity, meaning it will continue to exist for the life of the trust, which unfortunately is not the case for individuals.
- Impartiality
- A Trustee company is impartial.
- If an Individual trustee passes, there may be complications when appointing a new trustee. The trust may contain specific terms which must be adhered to, including one that specifies appointment needs to occur within a specified time frame
- Regulated and Monitored
- All Trustee’s, individuals and corporations, are regulated by the Trustee Act 1925 (NSW);
- However, in addition to legislation, a Trustee company is also monitored by ASIC, APRA and the ATO which ensures that all decisions are made in the best interests of the beneficiaries.
Who can be a trustee?
A trustee is an individual or corporation.
The trustee owns the trust assets, and it is their role to ensure that the terms of the Trust are fulfilled in the best interests of the beneficiaries.
Trustee’s Role and Responsibilities
A Trustee must make all decisions pertaining to Trust assets in a way that best meets the needs of the beneficiaries. Trustees powers are regulated by the Trustee Act 1925 (NSW).
A trustee is required to:
- Fulfil the terms of the trust;
- Protect, control and manage trust assets
- Act impartially, unanimously and transparently with the best interest of the beneficiaries; and
- Invest trust assets with due care, diligence and skill of a prudent person
What is a corporate trustee?
A Corporate Trustee is a company which is nominated to act as trustee in a Trust to be the legal owner of trust property on behalf of the beneficiaries.
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Sydney NSW 2000
info@Aquim.com