MWL FINANCIAL GROUP
SECTION – TRADIES
SUBJECT – What is a Trust?
Hi I'm Barbara Keating, Accountant and small business specialist at MWL Financial Group.
Are you in business or perhaps looking to invest, and was wondering which structure would best suit your needs?
One of the structures available is a Trust, and they come in various forms. Similar to a company forming a trust is like creating another person – the trust is liable for its own debts, and its day to day operations are run by its trustee. Trusts differ from companies when it comes to taxation as a trust does not retain any profits, rather the profits are distributed to beneficiaries who are then subsequently taxed.
Depending on the nature of the trust, the beneficiaries can be fixed or interchangeable. Fixed trusts have owners also known as unitholders who have a fixed entitlement to the profits of the trust. A discretionary trust does not have unit holders, however the profits are distributed to beneficiaries as per the trustee’s discretion.
For more information contact us at firstname.lastname@example.org and contact either me Barbara Keating or one of our experts will be more than happy to help.