Trusts:

A trust is a special legal relationship that exists between a trustee, beneficiary and involves ‘trust property’. A person who, either alone or jointly with another or others, has property which he or she holds, or rights which he or she is bound to exercise, for or on behalf of a person or persons or for the accomplishment of some particular purpose or purposes, holds the property or rights in trust for that person or those persons or that purpose or those purposes and is called a trustee. 

Each person for whom property or rights are held in trust is called a beneficiary. Inherent in the trust is that the trustee owes fiduciary duties to the beneficiaries. Generally, a person cannot be the sole trustee and beneficiary of a trust because then the legal and equitable title are unseparated. Although a trust is treated as a ‘relationship’, an alternative approach has been to describe it as an ‘obligation’. The obligations of a trustee are equitable and are enforceable only in a Court having equitable jurisdiction. Even though the trustee’s obligations are personal obligations, they are also annexed to the trust property, so that the beneficiary has rights of a proprietary nature constituting an equitable estate in the property, which rights are enforceable against any subsequent holders of the property other than a purchaser for value of the legal interest without notice (or an innocent third party that later acquires the trust property with no knowledge of the equitable interest by trust).  A trust is a vehicle or device that may be very useful for wealth generation, investment, tax minimisation and distribution of income and capital.  A qualified Trust Lawyer may have regard to your circumstances and advise you of the suitable trust structure that is compatible with your needs. 

A thorough understanding and working knowledge of trust law is often helpful in optimising your trust structure and achieving your objectives. At the pillar of any trust is the fiduciary relationship that exists between the trustee and the beneficiaries, so that the trustee must exercise his or her rights, duties and powers in a fiduciary capacity. 

There are many different types of trust with unique features and advantages.  Please see our “Asset Protection and Trusts Law” tab for further information. You may prefer the flexibility and tax advantages of a discretionary trust, require the fixed interest and entitlement from a unit trust or wish to operate your own family business through a trading trust. Regardless of your circumstances, we have the legal resources necessary for you to obtain sound legal advice in this area of complex, intricate law.

If you need further legal advice about your trusts matter, you may book an appointment with us by calling 02 9233 4048 or by sending an email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Tax or Accounting Advice. It does not take into account your objectives, financial situation or needs or your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.