Also known as a Discretionary Trust, it is essentially a relationship that is set out by a trust deed between a trustee and a beneficiary or beneficiaries. The trustee is given the duty of holding property on behalf of the beneficiaries. A Trust unlike other accounting and taxation entities separates the legal ownership of property and the beneficial (equitable) ownership. The different roles / parties in a family trust include:

• The Settlor
• The Trustee
• The Appointor
• The Beneficiaries
• The Trust Fund
• The Trust Deed

As the name suggests the income and capital distributions made by a Discretionary / Family Trust are at the discretion of the trustee. When used correctly Discretionary Trusts can be quite useful in:

• Taxation planning;
• Asset protection; and
• Estate Planning.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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