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What is a trust, how are they taxed, and which one should you choose?
A trust is a relationship between:
the trustee (who holds the legal title to trust assets for the benefit of the beneficiaries); and
the beneficiaries (on whose behalf and benefit the trust assets are held).
Are there different types of trusts?
Yes.
There are different types of trusts, for example:
discretionary trusts;
fixed trusts (including some unit trusts); and
hybrid trusts.
What is a discretionary trust?
Most trusts commonly referred to as ‘family trusts’ are discretionary trusts where:
the trustee (who holds the legal title to trust assets for the benefit of the beneficiaries); and
the beneficiaries (on whose behalf and benefit the trust assets are held).
Are there different types of trusts?
Yes.
There are different types of trusts, for example:
discretionary trusts;
fixed trusts (including some unit trusts); and
hybrid trusts.
What is a discretionary trust?
Most trusts commonly referred to as ‘family trusts’ are discretionary trusts where:
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