When you open a trust, it belongs to a legal category corporation or a person. But what does that mean? Let’s explain it simply. There are two types of bodies, incorporated or people that have the right of a trust. But the basic aim of the trust is that even if you live or pass away, it will continue its work and that makes it such a valuable asset for the state. Now let’s discuss what should be done when setting up a family trust.
Is setting up a trust only for rich people?
There is a misconception about setting up a trust that it is only for rich people, and even the local government and taxation authorities are also happy to do that. But first, you have to decide what does that word “Rich” means? If you think that if someone has 1 million, 2 million, or 5 million in their account, he is rich, then you are wrong. The definition of rich is totally different
What can you do with family trust?
When you set up a family trust Australia, you can do a lot of things. Here are a few examples.
- It can protect your assets from taxation authority.
- It won’t allow you to pay for your residential care by selling your family home.
- If any of your children get divorced, it won’t allow their ex to get anything from their inheritance.
- Prior relationships cannot take the inheritance of childrens.
Can the taxation authority challenge their decisions?
No one can challenge the decision of Trust, not even taxation authority. It is because it is recommended by the taxation authority for the planning the future of the generations with the family wealth. So if you are planning to set up a family trust, you have to do it within the time.
When should it be done?
If you are thinking of setting up a family trust, then you have to do it now and don’t waste your time. It is because if you don’t have any children it will be very supportive of your financial issues and will protect your future as well. If you don’t have children, it protects your joint account from seizure. And if you are a parent, then you have to do it for the future of your children.