A discretionary trust addresses the relationship in which a person (settlor) places assets under the control of the trustee for the benefit of a beneficiary or beneficiaries. It’s also known as a family trust.
Benefits of a discretionary trust:
When establishing a discretionary trust there are four key roles that need to be filled:
The Appointer, the Trustee, the Beneficiaries and the Settlor. Watch our video to learn more.
In 2007 the Australian government amended self-managed superannuation fund (SMSF) regulations. Now SMSFs have the ability to borrow money in order to purchase property. That’s when custody trusts were born.
A custody trust is known by several other names including bare trust, custodian trust or property trust. These are all different names for the same thing: a limited recourse borrowing arrangement. Simply put, a custody trust is established to enable you to borrow money to purchase property in your SMSF. Watch our video to find out more!