Trusts are a structure unique to legal systems based on the English Common Law.
Trusts can be used in a number of circumstances including:
- to benefit recipients of income while protecting the assets of the trust;
- providing for individuals who, due to age or a medical condition, are unable to look after their own financial affairs;
- provide for various generations in family business structures;
- protect assets of the family and business as they pass from one generation to another.
There can be substantial taxation benefits from the operation of trusts. This has led in recent years to the adoption by many businesses of trust structures for their day to day operation.
However, the structure of trusts place obligations on trustees and restrictions on dealing with the assets of the trusts that do not always apply to other structures such as companies.
Obtaining assistance in creating trusts and advice on the rights and obligations of trustees is available from the experienced professionals at the Qld Law Group.