Hi All,
I’m looking to setup a discretionary trust (often called family trust). It will be myself (at top tax rate), a company (just for investing) and a child < 14yrs old.
I will buy Australian ETFs in the trust.
- Beyond the initial settlement how do I put money into the trust? This would be from my PAYG (after tax) income? The aim is to buy ETFs in the name of the company. How can this work?
- Hypothetically in Year 1 the trust makes $1000 in distributions. The trustee directs that all in the company, pay 30% tax. Now when the company buys more ETFs, the company wants it under the trust ownership.
- Is that possible?
- Does the company need to send money to the trust? How is this done.
- If the child is paid $400 and they buy shares in the trust, does it need to be accounted in a specific way (ie child has purchased X amount of shares, or has paid $Y to buy shares)?
I’ve read a lot about trusts, benefits, but can’t find a good example on how it operates. The only examples are very high level.
The most helpful background info I've found (watch the video):
https://lawpath.com.au/blog/your-guide-to-set-up-a-family-trust
1,053 views
1,053 views1 replies
1 replies
1,053 views
1 replies