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Trusts
There are many reasons for creating a Trust and there are several different types of trusts. In Australia there are Trust and/or Trustee Acts in force in all States and Territories and the establishment of a Trust should comply with the relevant statute.
In summary, a Trust is created to enable the Trustee (the person setting up the Trust) to control what happens to certain funds or property in the future. For example, this is sometimes appropriate where a Beneficiary remarries and property should be placed beyond the legal reach of any subsequent spouse. A Trust may also be appropriate to ensure the long-term financial wellbeing of small children into adulthood should a Beneficiary die prematurely or become otherwise incapacitated. A Trust is often established simply as part of wealth management including for taxation purposes and specialist advice should always be sought.
There are benefits in having a Trust in the event of insolvency, as the property in the Trust may be beyond the legal reach of creditors (however this will depend on certain details surrounding the settlement of the Trust including in particular the date when the Trust was established and the purpose for which it was set up). This is a highly specialised area in the law and LAWLIVE® users should always obtain appropriate legal advice.
Finally, since the introduction of Commonwealth legislation in 1993 which imposed the compulsory superannuation levy, most Australians are now members of a Superannuation Trust Fund (either industry, retail or self-managed). Members of a Super Trust Fund should receive full details including membership entitlements from the Fund Manager or Fund Trustee (if the Trustee is also the Manager).
