Discretionary Trusts

Safeguarding your assets and family interests through a discretionary trust

Discretionary trusts (often referred to as ‘family trusts’) are a popular business and wealth management tool, which when correctly structured can provide significant asset protection as well as taxation and family succession benefits.

A discretionary trust must have assets, beneficiaries, a trust deed and a trustee - which may be an individual or a company. The trustee of a discretionary trust has wide discretion as to how and when trust funds are distributed amongst beneficiaries, and in what proportion those funds are distributed. This is particularly useful in distributing capital gains and income amongst beneficiaries with differential marginal tax rates. The level of discretion is determined by the terms of the Trust Deed, which governs the operation of the trust.

Depending on your personal, financial and legal circumstances, your Markiewicz & Co. adviser may recommend that you consider a discretionary trust as an integral component of your wealth management plan. As trusts are complex legal entities, and their operation often closely monitored by the Australian Tax Office, we can recommend specialists in law and taxation accounting who can assist you establish the right structure for your trust, and ensure that it is operated correctly.

Like to know more?

To find out more about Markiewicz & Co.’s wealth management and planning services, or to contact an adviser, please call us on 1300 276 112 or send an email.