How to set up a family trust in Victoria: step-by-step guide
Family trust is like a bucket that holds your assets and manages them well. They are managed by a designated person known as the trustee of the trust. One determines how the income from these assets will be shared among beneficiaries. However, setting up trust is not a straightforward road, as it is a strenuous process. Therefore, seeking Family Trust Services in Melbourne is necessary to make the legal procedure smooth and precise. Tax accountants play a key role in establishing trust by providing expert guidance. From drafting a trust deed to managing legal formation, and optimizing taxes are managed by accountants. They provide stepwise guidance to form trust without any glitches.
ATO & Legal Requirements for Trust Establishment in Victoria
Once you have decided to set up a family trust, it’s time to execute your plan. In this phase, Family Trust Accountants Melbourne shares information about legal requirements. See below the required legal steps to form a family trust:
- Selecting the Trustee
A trustee may be an individual or a group of people, or a company, to manage your assets. A corporate trustee is often preferred as trustee for added legal protection to assets.
- Forming a Trust Deed
Without a trust deed, it is impossible to establish a family trust because it outlines how the trust operates. It listed the names of beneficiaries and the powers of the trustee.
- Settling the Trust
Trust is created officially when a settlor provides an initial sum of money to the trustee. It could be anything, e.g., 10 AUD, which is considered as first asset of the trust.
- TFN & ABN Application
ABN & TFN are required for Family Trust Accounting Services in Melbourne to file annual returns. Accountants lodge tax returns and accounting reports using these numbers.
- Trust GST Registration
GST number is required if the trust’s business is expected to be 75000 AUD or more in the fiscal year. GST registration for a trust ensures it complies with Australian Taxation Office regulations.
- Opening a Bank Account
A separate trust bank account is required to maintain a record of income and expenses. It is necessary to keep the trust bank account separate from the personal accounts of beneficiaries.
- Paying Stamp Duty
In Victoria, you need to pay the stamp duty and the fee paid for the trust deed. Melbourne Family Trust Accountants give specific advice on stamp duty payment for family trusts.
Register your Family Trust Precisely with Kirpa Tax
Understanding on to establish family trust can help you to follow the right procedure. It benefits you with legal income splitting through distribution among family members. Also, you can protect your assets as well as do wealth planning. But there are several mistakes to avoid during the registration process. That’s where you need reliable Melbourne Family Trust Services from these experts. This is a leading accounting firm with expertise in trust registration, preparing trust deeds, managing accounts, and tax returns. Seeking professional advice from experts ensures that the trust deed is compliant as per ATO regulations.
FAQ’s
Is there any cost relating to family trust registration in Victoria?
A trust setup requires a legal procedure that is mandated by the government, so it costs between 1000 and 2000 AUD. Hire Family Trust Services in Melbourne from the Kirpa Tax Accounting firm.
Why do I need an expert tax accountant for trust setup?
It is highly recommended to ensure that your trust is structured precisely with all completed formalities. Family Trust Accountants Melbourne, like Kirpa Tax, are leading trust setup service providers.
Are family trust and discretionary trust the same in Victoria?
In Victoria, Australia, a family trust is also referred to as a discretionary trust. It is due to the power of the trustee having discretion to determine income sharing among beneficiaries.
Can I appoint a beneficiary as trustee of my family trust?
A trustee and beneficiary of a family trust can be the same person as part of its legal structuring. Kirpa Tax Accounting Firm provides key advice to you in this context.
How can accountants prepare a trust deed for my family trust?
Kirpa Tax draft trust deed, including trust name and parties involved in the structure. Also, we provide Family Trust Accounting Services in Melbourne for accounting & taxation.
Is there an advantage to using an accountant for a family trust?
Melbourne Family Trust Accountants ensure legal compliance, optimize trust tax, and provide expert advice. Consult the Kirpa Tax Accounting firm to get these services for your trust.
What documents should I provide you as my trust accountant?
Provide financial statements, beneficial details, and receipts to get precise accounting services. We provide you with reliable taxation and accounting services at Kirpa Tax.