![]() ![]() You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). A trustee may be appointed for various purposes, such as in the case of bankruptcy, certain types of retirement plans or pensions, or to manage assets for someone. © Australian Taxation Office for the Commonwealth of Australia A trustee is a person or firm that holds and administers property or assets for the benefit of a third party. Trusts can serve a multiple of other purposes such as reducing. For example, a declaration of trust can ensure that funds are only used for certain purposes such as education or charitable donations. If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. One of the benefits of a trust is that assets can be professionally administered and used following the beneficiary’s original intent. Make sure you have the information for the right year before making decisions based on that information. Some of the information on this website applies to a specific financial year. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. From checking and savings accounts, to money market and retirement accounts, Washington Trust offers a personal account to fit your needs. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. ![]() Trusts – tax consequences of trust splitting.Trusts – registering and reporting for tax.There are special rules for some types of trust including family trusts, deceased estates and super funds. The trustee is responsible for managing the trust's tax affairs, including registering the trust in the tax system, lodging trust tax returns and paying some tax liabilities.īeneficiaries (except some minors and non-residents) include their share of the trust's net income as income in their own tax returns. While in legal terms a trust is a relationship not a legal entity, trusts are treated as taxpayer entities for the purposes of tax administration. These individuals will receive the proceeds from the trust as determined by the nature of the trust specifications.Trusts are widely used for investment and business purposes.Ī trust is an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries. Make a list of beneficiaries for the trust. The primary difference is that you can dissolve or change a revocable trust, because you retain some ownership rights over the assets involved, while assets in an irrevocable trust have their ownership transferred to the trust, which serves as legal owner for the assets. Set the living fund as either revocable or irrevocable. The living trust comes into effect during your lifetime and transfers the assets into the fund when established, with you usually serving as one of the trustees overseeing the fund. The after-death trust comes into effect after your death, with assets transferred into the trust through probate, and is usually included in your will. Choose to create either an after-death "testamentary" trust or a living "inter woos" trust. ![]() To set up a trust account, start by establishing the nature of the trust that you are creating.
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