Trusts offer several advantages for managing your wealth, which include:
- Protection of Assets: In certain situations, family assets can be shielded from creditors and other potential threats in the event of bankruptcy or insolvency.
- Australia-wide operation: Trusts established under Australian law can effectively operate in every state of Australia. If you have beneficiaries residing overseas, it is advisable to consult with a tax professional to consider the various tax implications.
- Flexibility: Trust deeds are adaptable and can accommodate a broad range of beneficiary categories and investments, and different types of income can be assigned to different beneficiaries.
- Minimal regulation: Trusts have fewer reporting requirements and obligations than corporate structures.
- Tax reduction: Income can be directed towards family members who are subject to lower tax rates, but it is recommended that you seek advice from a tax professional before doing so.