All Topics / The Treasure Chest / Discretionary Trust Beneficiaries

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  • Profile photo of whjwhj
    Member
    @whj
    Join Date: 2003
    Post Count: 13

    Hi All

    When setting up a Discretionary Trust you have to name the beneficiaries.

    What I am wondering if in future I wish to add a company as one of the beneficiaries, can this be easily done or would it involve having a new trust deed drawn up, etc, etc

    Thanks

    WHJ

    Profile photo of NessieNessie
    Member
    @nessie
    Join Date: 2001
    Post Count: 73

    Hi WHJ

    I’ll see if I can explain the answer you are looking for.

    The Trust document should have 2 types of beneficiaries.

    Specified Beneficiaries which is usually “the husband, the wife and any child or children of them”.

    General Beneficaries which can be
    1. parents, brothers, spouses, widows, cousins children and remoter issue and next of kin of the Specified Beneficaries
    2. Any Charity
    3. Any eligible corporation
    4. Any eligible trust

    BUT – 2,3 and 4 must be defined in the definitions section of the Trust Document.

    If you have this in place then regardless of when you want to add a company or a new trust in the future as a beneficary you are covered under no. 3. and 4. without needing to alter your Trust Deed.

    The good thing about a Discretionary Trust is that the Trustee has the discretion to distribute the income to whoever it likes within the names Specified Beneficaries or General Beneficaries.

    If you are unsure about this you should speak to your Accountant and/or Solicitor.

    Cheers
    Nessie

    Profile photo of whjwhj
    Member
    @whj
    Join Date: 2003
    Post Count: 13

    Thanks Nessie,

    I have been sitting here, working out how I want to structure everything and that was one thing I could not find an answer for.

    WHJ

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    My trust has me as trustee and the deed is worded so that any company that I am a shareholder of or office holder of is also automatically a beneficiary of the trust.

    I think you can see some sample deeds at:
    http://www.chrisbatten.com.au

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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