Business & Family Trusts Townsville
What Is A Trust?
A trust is a legal arrangement where one party, the trustee, holds and manages assets on behalf of another, the beneficiary. The trustee has a legal duty to act in the best interests of the beneficiary, following the terms of the trust. The assets can include anything from real estate and investments to cash or personal property.
Trusts are often used for estate planning, protecting assets, reducing tax exposure, and managing finances for minors or individuals who are unable to do so themselves. They can be tailored for both personal and business purposes, offering flexibility, control, and peace of mind.
At CBC Lawyers, we make navigating trusts straightforward. Whether you’re setting up a family trust, business trust, or need help managing an existing one, our team is here to guide you. Based in Townsville, we proudly serve clients across North Queensland, including Cairns, Ayr, and the Burdekin.
What's The Purpose Of A Family Trust?
A family trust also known as a discretionary trust is a smart, flexible way to protect your wealth and plan for the future. It allows assets to be managed by a trustee for the benefit of family members, offering control, security, and peace of mind.
Family trusts are commonly used for estate planning, ensuring your assets are passed on according to your wishes. They’re especially helpful when beneficiaries are minors, have disabilities, or need financial guidance. These trusts also offer potential tax advantages by enabling income to be distributed across family members in a tax-effective way.
At CBC Lawyers, we help families create and manage trusts that safeguard their legacy and support their loved ones long into the future.
How We Can Help You With Your Family Or Business Trust
At CBC Lawyers, we realise trust law can be complex and difficult to navigate. That’s why we offer a range of services to help you set up, manage and administer your family or business trust.
Our team of lawyers can provide the expertise and guidance you need to ensure your trust is set up in accordance with Queensland law and your unique circumstances. We can help you identify the type of trust best suited for your needs, prepare the necessary documentation and agreements and provide tax advice.
We can also help you manage and administer your trust over time. Our team provides ongoing support, including reviewing existing arrangements, assessing restructuring options and providing training for members of your team.
How Do I Set Up A Trust?
If you’re interested in setting up a family or business trust, or need help managing an existing trust, look no further than CBC Lawyers. Our team of lawyers can provide you with professional advice and guidance to help you secure your financial future. Don’t wait any longer to take control of your estate planning and asset protection.
Reach out to CBC Lawyers today via our online contact form or give us a call on (07) 4772 3644. One of our team will schedule a consultation so you can take the first step towards setting up a trust to suit your individual needs.
FAQs
Who are the key people in a trust?
A trust typically involves three key roles: the settlor, trustee and beneficiaries. The settlor can initiate the trust and transfer assets into it. The trustee can manage these assets, helping ensure they are administered according to the trust deed for the benefit of the beneficiaries. Beneficiaries are the individuals or entities that can benefit from the trust, whether through income or capital distributions, as determined by the terms of the trust deed. Each role is vital for the proper functioning and administration of the trust.
Must all beneficiaries of a family trust be from the same family?
Not all family trust beneficiaries (or a discretionary trust) must be from the same family. Although family trusts are generally designed to benefit family members, they may also include non-family beneficiaries. The trustee can distribute trust benefits to various individuals as outlined in the trust deed. This allows broad discretion in managing distributions to meet the trust’s objectives. Speak with our Townsville lawyers to clarify any questions you might have.
Can people aged under 18 be beneficiaries?
Yes, people under 18 can be beneficiaries of a trust. However, specific legal and tax rules apply to income distribution for minors, including possible tax penalties. Often, trustees may accumulate income until the minor turns 18 or use the funds for their benefit, such as education or living expenses, as outlined in the trust deed. Trustees must carefully follow these regulations to help ensure compliance. Our family lawyers in Townsville can guide you through setting up a trust for minors.
What are the tax implications of setting up a family trust in Queensland?
Establishing a family trust can help distribute pre-tax income among beneficiaries, potentially lowering the overall tax burden. However, careful planning is required to comply with tax laws and regulations. Trusts are subject to their tax rates, and family trust lawyers must manage distributions and tax liabilities effectively to benefit from any potential tax savings.
Can a family trust be used to protect assets from creditors?
A properly structured family trust can offer asset protection from creditors, particularly in cases of financial distress or legal claims against the beneficiaries. The key is that the trust assets legally belong to the trust, not the beneficiaries. Hence, they are generally beyond the reach of personal creditors. However, trusts must be established and operated correctly to maintain their protective benefits in legal proceedings.
What is the difference between a revocable and an irrevocable trust?
during their lifetime, providing flexibility to change trustees, beneficiaries, or terms of the trust as personal circumstances change. In contrast, an irrevocable trust cannot be altered once established, providing stronger asset protection but less flexibility. This makes irrevocable trusts particularly useful for long-term estate planning and tax benefits.
How often should a family trust be reviewed or updated?
It’s advisable to review a family trust at least every two to three years or after significant life events such as marriages, divorces, births, deaths, or substantial changes in the law. Regular reviews help maintain the trust’s alignment with the current legal landscape, the settlor’s intentions, and the beneficiaries’ needs.
What are the responsibilities of a trustee in a family trust?
Trustees are legally obligated to act in the best interests of the beneficiaries. This involves responsibly managing the trust’s assets, adhering to all legal and tax requirements, and distributing assets according to the trust deed. Trustees must also maintain accurate records, provide information to beneficiaries as required, and avoid conflicts of interest.