Difference between Discretionary Trust - investment, services management, and trading. | ATO Community

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(Newbie)Newbie

25 Sept 2024

Hi, I am register an ABN for my newly setup discretionary family trust, and there are three types of family trusts to choose from, namely Discretionary Trust - investment, Discretionary Trust - services management, and Discretionary Trust - trading. Can I ask what are the differences between them? If I set up a Discretionary Trust - investment, can I still do trading under it? Thanks!

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(Community Support)Community Support

27 Sept 2024

Hello @xzhe0005

A discretionary trust is where the trustee gets some choice in how the income or assets get distributed.

Investment is where cash flows in primarily from investment moves.
Services management is service activities, management activities or both.
Trading is the bustling marketplace where the main income is from business.

An investment trust may be able to do trading. But do your research first as trusts can be complex.

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(Community Support)Community Support

27 Sept 2024

Hello @xzhe0005

A discretionary trust is where the trustee gets some choice in how the income or assets get distributed.

Investment is where cash flows in primarily from investment moves.
Services management is service activities, management activities or both.
Trading is the bustling marketplace where the main income is from business.

An investment trust may be able to do trading. But do your research first as trusts can be complex.

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Difference between Discretionary Trust - investment, services management, and trading. | ATO Community