Trusts
Trusts are set up by people for a number of reasons including succession planning, asset protection and tax maximization and sometimes trusts are set up unintentionally due to the operation of the law.
The basic elements of a trust are:
- trustee
- trust property or asset
- beneficiary or object
Resulting or Implied Trusts
Resulting or implied trusts arise when the settlor fails to distribute the whole of the interest or there is a surplus after the original purpose of the trust has been satisfied. Such situations also arise when a person buys a property in somebody else's name.
Constructive Trusts
Constructive trusts arises upon an order of the Court, as a remedial devise, where the Court would impose a trust relationship to correct a wrongful act.
Express Trusts
People would see their solicitors and tax advisors to create a specific trust for them to serve the purpose intended. These are called express trusts and are categorized as follows:
Other Trusts
Other forms of trusts include:
- Testamentary trust - a trust created pursuant to a will
- Protective trust - a trust set up so that the income goes to the beneficiary and is available for the beneficiary and the beneficiary's family's maintenance and support
Whilst most people would create one or the other of the above trusts for personal reasons, some do wish to create a trust for benevolent purposes which is called "charitable trust" - a trust set up for strictly "charitable" at law, that is, for the benefit of the public at large can include purposes such as:
- relief of poverty
- advancement of education
- advancement of religion
Whatever your reasons or motives, consult a lawyer to advise you as to which trust would best suit your purpose
Trusts Articles
Preservation of Wealth – Trusts and Tax Planning
Date: October 15, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Trusts are a useful and effective tool to protect assets and minimise exposure to tax.
Business and Commercial Law - Liability of Directors in Trustee Company's
Date: October 08, 2010
Author(s): LAC Lawyers
You have been appointed as a Director of a Corporate Trustee pursuant to a Deed of Trust and you are now concerned about your function and role in the Corporate Trustee with respect to the liabilities of the Corporate Trustee and your liabilities to the Trust if there are insufficient assets to meet the Trust’s liabilities.
Is it the beginning of the end for discretionary trusts and one-man companies - A change of view point
Date: September 01, 2010
Author(s): Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.
There are suggestions that Australian courts are now changing their approach to the interpretation of statutes with the effect that discretionary trusts are not as useful in avoiding statutory obligations. In other words, in the words of the Bob Dylan song “… the times, they are a-changin”!
Is it the beginning of the end for discretionary trusts and one-man companies - Centrelink, Bankruptcy and Taxation
Date: September 01, 2010
Author(s): Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.
Another example is Elliott v. The Secretary of the Department of Education, Employment and Workplace Relations decided in 2008 immediately before the High Court of Australia’s decision in Spry and was concerned with the means test for Centrelink pensions.
Is it the beginning of the end for discretionary trusts and one-man companies?
Date: September 01, 2010
Author(s): Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.
The traditional usefulness of discretionary trusts arises from the puzzling position they hold in the law. Property transferred to these entities is effectively ownerless until discretionary trustees determine to appoint the property to discretionary beneficiaries.
Business Law - Business Structures - Partnerships
Date: April 02, 2009
Author(s): LAC Lawyers
The term “Partnership” is defined in the Partnership Act 1892 (the “Act”) as the relationship that exists between persons carrying on business in common with a view of profit. From this...
What to expect when you call LAC Lawyers
Date: December 13, 2006
Author(s): LAC Lawyers
LAC Lawyers is a full service firm dedicated to the provision of superior legal services in Australia. Our aim is to provide unrivalled client satisfaction coupled with high quality service and advice. When you call LAC Lawyers our friendly reception staff will spend time with you to identify the area of law your enquiry relates to then pass you on to one of our qualified solicitor's who can help you.