| There are a wide variety of diverse business | | | | it may be beneficial to have a corporate beneficiary of |
| structures that exist in the current environment and this | | | | the trust. In this situation, any proceeds that are |
| can be the cause of much stress and confusion for | | | | allocated to the corporate beneficiary are taxed at the |
| many business owners. However, it need not be this | | | | Company Tax rate of 30% as opposed to the higher |
| way. The best structure for your business is generally | | | | marginal tax rates that may be applicable for individual |
| determined by what your main intentions or desires | | | | beneficiaries. For example, if the individual beneficiaries |
| are for both the short term and long term. This could | | | | are in the top marginal tax bracket a significant 15% |
| be for asset protection reasons, optimizing tax | | | | could be saved off your tax bill. |
| effectiveness, or a combination of the two, or perhaps | | | | You may also elect to have a company as the |
| even something else altogether. | | | | trustee for your family trust. This ensures that the trust |
| The best way to determine which structure is best for | | | | is not owned or dictated by one individual but rather it |
| you is to speak with your professional business | | | | is overseen by all directors of the company. In this |
| advisors, including your accountant and tax lawyer as | | | | arrangement all of the assets of the trust are legally |
| well as any other financial advisors that you might | | | | held in the business name. This provides a level of |
| have. Your advisors will be able to work with you to | | | | asset protection for the trust and its assets as should |
| devise the best business structure that will meet your | | | | the company or any individuals come into financial |
| intentions and the needs of the business. | | | | trouble the assets of the trust are secure and unable |
| One of the most common ways of using a business | | | | to be touched by any debtors. |
| and trust structure is to have a family trust. Perhaps | | | | As you can see, there can be significant benefits in |
| the main benefit of a family trust is that at the end of | | | | adopting trust arrangements into your new or existing |
| each financial year you are able to nominate which | | | | business structures. Family trusts, corporate trustees |
| beneficiaries are to receive proceeds from the trust | | | | and corporate beneficiaries are just one slice of the |
| as well as how much each will receive. Of course the | | | | pie. With the right advice and by implementing the |
| money never actually leaves the trust, but profits must | | | | optimal arrangement for your individual situation you |
| be distributed and they are immediately re-invested | | | | can not only potentially reap the benefits of significant |
| back into the trust. | | | | tax benefits but also secure the ongoing stability of |
| The benefit of this arrangement is that this allows | | | | your business and financial affairs. |
| funds to be distributed to those beneficiaries with the | | | | Contact the team of professional lawyers and |
| lowest income levels and therefore less tax is paid. | | | | accountants at The Quinn Group to discuss the best |
| For example, it may be ideal to direct proceeds to the | | | | business structure options for your business. Whether |
| younger members of the family or non-working | | | | it is changes to existing structures or advice for new |
| spouses as their income will be in the lower range | | | | or proposed ventures we will work with you to ensure |
| marginal income tax brackets. | | | | that your affairs are structured to work towards the |
| Alternatively, if all of the beneficiaries of a family trust | | | | goals you desire. Call us on 1300 QUINNS or click here |
| are earning significant amounts of taxable income then | | | | to submit an online enquiry. |