A family trust is a discretionary trust typically established during someone’s lifetime for the benefit of their family. It can be used to hold and protect assets, run a family business, manage investments, and support beneficiaries. At Foye Legal, we help you understand how family trusts work and if they are right for your family. In these important family financial matters, the right lawyer is everything for achieving the best outcome.
A family trust is created through a trust deed, which outlines the terms and conditions under which the trust operates.
Key participants include:
Establishing a family trust involves meeting specific legal and tax requirements, including:
Family trusts offer several benefits, including:
In family law matters, while the courts have wide-reaching powers, assets held in a family trust may have a higher likelihood of exclusion from the matrimonial property pool, depending on how the trust is structured.
While family trusts offer many advantages, they also have some drawbacks, such as:
These costs vary based on individual circumstances but are often outweighed by the long-term benefits of the trust.
Family trusts are a flexible and powerful tool for managing wealth, protecting assets, and planning for the future. However, their complexity requires careful planning and professional guidance to ensure compliance with legal and tax obligations while maximizing their benefits.
At Foye Legal, our experienced team can assist you in establishing and managing a family trust tailored to your needs.
At Foye Legal, we provide expert advice on drafting, updating, and safeguarding your will to ensure it meets all legal requirements and reflects your true intentions. Whether you’re creating a new will, revising an existing one, or dealing with a contested will, our team is here to guide you through every step of the process.
Seeking legal assistance early gives you control over your situation, helping you avoid complications and manage costs effectively. This guide provides practical tips, checklists, and key insights to help you confidently navigate legal processes to secure the best possible outcome.
Your first consultation is vital in safeguarding your interests and laying the foundation for the best possible outcome. At Foye Legal, we value the trust you place in us and are committed to providing clarity, strategy and unwavering support from day one.
A Family Trust, also known as a discretionary trust, is a legal structure in Australia used to hold and manage assets for the benefit of family members. Its main purposes often include tax planning (through income splitting), asset protection, and facilitating the transfer of wealth to future generations. The trustee has the discretion to decide how and when to distribute income and capital to the beneficiaries.
Key benefits can include tax flexibility by distributing income to beneficiaries in lower tax brackets, potential asset protection as the assets are owned by the trust and not the individual beneficiaries, and estate planning advantages by potentially avoiding probate and facilitating smoother wealth transfer.
Yes, Family Trusts can be complex to set up and administer, often requiring professional legal and accounting advice, leading to ongoing costs. They may also have limitations regarding access to certain tax concessions or government grants, and losses incurred within the trust may be trapped and unable to be offset against a beneficiary’s personal income. Additionally, trust income that isn’t distributed may be taxed at the highest marginal tax rate.
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3/1 MEMORIAL DRIVE SHELLHARBOUR CITY NSW 2529
LEVEL 3, 63 MARKET STREET WOLLONGONG NSW 2500
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3/1 MEMORIAL DRIVE SHELLHARBOUR CITY NSW 2529
LEVEL 3, 63 MARKET STREET WOLLONGONG NSW 2500
contact us to make an appointment
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