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Protecting Assets and Preserving Wealth through Discretionary Trusts

What is a Trust?

A Trust is formed when a person or entity (the Trustee) holds assets for the benefit of another person or class of persons or entities (the Beneficiaries). Strict legal and fiduciary obligations are imposed upon the Trustee in order to protect the Beneficiaries’ interest in the trust assets. Under these obligations, a Trustee must act:

  1. in good faith, honestly and not profit from the Trust (as Trustee);
  2. with due care, skill and diligence and avoid conflicts of interest;
  3. in the best interests of the Beneficiaries;
  4. to preserve the Trust property;
  5. in person and not delegate their duty to another person; and
  6. transparently and account and provide information to the Beneficiaries, upon request.

The Trustee’s failure to comply with its fiduciary obligations can result in the Beneficiaries commencing legal proceedings against the Trustee in respect of such breach. [...]  READ MORE →

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Immediate review of discretionary trust deeds required in light of NSW duty and land tax changes

Introduction

As a result of the 2016 NSW State Budget the NSW Government has introduced two measures aimed at foreign investors purchasing or holding NSW residential land.

Firstly, a surcharge duty of 4% has been effective from 21 June 2016 and will apply to acquisitions of NSW residential land by foreign persons.  This surcharge is payable in additional to any other stamp duty payable on the transaction.

Additionally there is a 0.75% surcharge land tax that applies to foreign persons who are owners of NSW residential land as at 31 December in each calendar year and to commence from the 2017 land tax year. [...]  READ MORE →