I am looking to form and register a trust to distribute income for tax purposes and need advice on the structure of the trust and the various members associated with it.
I live in Victoria with my wife and daughter (5 years old) with no other relatives.
I have a registered company (pty ltd) ‘Company A’ which I maintain for tax purposes but is not operational (no income/expenses)
I have another company (pty ltd) ‘Company B’ which I use to provide professional services to generate income and maintain it regularly for tax purposes
I pay my wife part of my income from company B as a tax salary
We have a house in Victoria named after me and my wife (co-owner)
Now I am looking to form a trust as we are looking to invest our savings together through a trust to distribute the income from that investment.
I am looking for the following configuration:
The settlor: My father-in-law (he lives in India)
Nomination: Myself (Individual)
Trustee: Company A (I am the only director)
Beneficiary: myself, my wife and my 5-year-old daughter (all natural persons)
Can anyone advise on:
What happens to the assets of the trust in the event of the death of the director of Company A (myself)?
Are there any issues with bank loans or tax obligations if I add my 5 year old daughter as a beneficiary?
What happens to the assets of the trust if a liability lies with the director of Company A (myself being the director) at a personal level or at a corporate level?
What is the suggested best structure I can form to establish this trust?
I tried to search the internet but couldn’t find any specific information about my situation.
Any help would be much appreciated.
Thanks for reading!