There are several parties that make up a trust structure, each serving a different role. The ‘trustee’ is the person who distributes the trust’s assets to the beneficiaries. A trustee can be either a real person, known as an ‘individual trustee’, or a company, known as a ‘corporate trustee’.
Can a discretionary trust have a corporate trustee?
Some benefits of having a corporate trustee for a discretionary trust include: Asset identification of the trust’s assets and personal assets is more straight forward. As the corporate trustee is a company, it does not cease to act as a trustee if one of the company’s directors dies.
What is the purpose of a trustee company?
A trustee company is a legal entity that manages and invests funds on behalf of a beneficiary for their benefit. Arguably, licensed trustee companies are broadening the scope of their traditional activities.
Can a company act as a trustee?
In general, any individual, company or other corporation may be appointed as a trustee.
Who can be a trustee of a discretionary trust?
WHO CAN I APPOINT AS A TRUSTEE? Generally anyone, but the people appointed must be over 18 years of age and of sound mind. The trustees should be people who the settlor believes will act in the best interests of the beneficiaries.
Can a corporate trustee be a trustee of a discretionary trust?
This article assumes you have already set up a discretionary trust and looks at the advantages of a corporate trustee as well as when you can be the trustee of your trust. What is a Discretionary Trust? A discretionary trust is a legal arrangement for one entity to hold assets on behalf of another entity.
Can a company be the trustee of a family trust?
To reduce risk you separate, as far as you can, the business from the individual. One method to do this is to trade through a Family Trust with a company as the trustee. This is called a ‘Family Trust with a corporate trustee’. It is a low cost and effective way of carrying out asset protection. Build a corporate trustee company first.
When to use a discretionary trust for investment?
Investment structure: A discretionary trust can be an appropriate structure for investments and trading, for example, as a business. Deciding on a trustee: Should you have an individual or corporate trustee?
What’s the difference between a trust and a company?
A trust is a relationship where a trustee (an individual or a company) carries on business for the benefit of other people (the beneficiaries). A trust may be discretionary, which is where the trustee decides how profit will be distributed among beneficiaries.
