Family Trusts A Plain English Guide for Australian Families

Family trusts can be quite complex and difficult to set up correctly, and many people don't realise just how beneficial a trust can be. Even for families of average income, trusts deserve a second look. Family Trusts: A Plain English Guide for Australian Families of Average Means, 5^th Edition is a comprehensive guide to the advantages and disadvantages, investment nuances, taxation regulations, and social security rules surrounding trusts. This book, by author Nick Renton, and newly updated by Rod Caldwell, provides the information you need to make an informed decision and ask the right questions of your financial and legal advisors.

The book details all aspects of both setting up and running a family trust, including discretionary versus unitised trusts, trust deeds, and the roles and responsibilities of settlors and trustees. You'll learn how trusts can be used to benefit philanthropic foundations, and how to manage a trust intended for the financial care of a child with an intellectual disability. This Fifth Edition has been fully updated for the 2014 – 2015 tax year, and amended to parallel the May 2014 budget. The new material details topics like:

• Rates and trustee qualifications
• Hybrid trusts and non-resident beneficiaries
• Borrowing by trustees, and trustee meeting minutes
• Protecting assets against creditors, bankruptcy, and divorce

The book also includes real-life case studies that provide examples of proper handling and help illustrate important concepts. Additionally, alternatives are discussed for situations where a family trust may not be the best structure to use. If you're an average person wishing to ensure your family's financial well-being, Family Trusts: A Plain English Guide for Australian Families of Average means, 5^th Edition is the most complete guide on the market.

NICK RENTON was a consulting actuary and writer, well known for his professional guides on meetings procedure and voluntary associations, and for his many books and articles on investment, business, taxation and retirement issues. Nick passed away in August 2010.

ROD CALDWELL worked as a tax accountant for the Australian Taxation Office (ATO) for 20 years before becoming a tertiary level lecturer in taxation and management accounting. Rod has written four other books on Australian business accounting and tax law. Visit his website at www.tpabusiness.com.au

Preface ix

1 The concept of a trust 1

2 Modern family trusts — advantages and disadvantages 11

3 Types of family trusts 35

4 The trustee 45

5 Administrative aspects of a trust 71

6 Income tax 99

7 Capital gains tax 119

8 Taxation of family trusts 135

9 Social security 163

10 Investment decisions 181

11 Other types of trusts 187

12 Other issues to consider 211

Appendix A: Wills and trusts compared and contrasted 241

Appendix B: Differences between trust deeds and powers of attorney 243

Appendix C: Tax rates 2014–15 245

Glossary 249

Index 277

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