Flexibility for your family and your business
Family trusts can be an ideal choice for families with multiple investment assets or for small businesses but they come with some complications
Trusts in a business structure
We advise on whether a trust suits your circumstances, how it fits alongside a company, and what your obligations will be as trustee each year, including distribution resolutions before 30 June.
Trusts that cross borders
A trust’s tax position can change when you, or the trust’s management, move country. A trust is generally an Australian resident trust if a trustee is an Australian resident, or if it is controlled from Australia. Leaving, returning to or arriving in Australia can therefore change how a trust and its beneficiaries are taxed. We often find that overseas trusts need restructuring to avoid unexpected Australian tax.
Receiving money from an overseas trust
If you’re an Australian resident and a beneficiary of a foreign trust, money you receive from it can be taxed in Australia under section 99B, even when the trust’s income was earned overseas, years ago, or before you moved here. Payments of accumulated income and gains can attract an interest charge on top of the tax, calculated from when the trust first earned that income. The trust’s original capital is not taxed, but you need records to show what each payment is made up of.
Get advice before you receive a distribution, while there may still be options to reduce the tax and interest.
how we work
Your information
You give us an overview of your assets, how they’re owned and your goals..
Consultation
We meet by video or phone to discuss the opportunities, strategies and risks for your situation.
Written advice
You receive a written summary of our recommendations, the next steps and a fixed-fee proposal for any further work.