Wills and trusts

Discretionary Family Trust Deed (NSW)

Set up a discretionary family trust in NSW, with a trustee, appointor and a wide class of beneficiaries.

Tax advice: Get advice from your accountant or tax adviser on whether a discretionary trust suits your circumstances before you sign.
Settlor: Choose a settlor. This should be an independent adult, often a relative or friend, who will never benefit from the trust. The settlor must not be the trustee, an appointor or a beneficiary.
Settlement sum: The settlor gives the trustee a small amount of cash (commonly $10) to start the trust. Keep that money (it can be the first deposit into the trust's bank account).
Trustee: Decide whether the trustee will be a company or individuals. A company trustee is usually recommended because it makes later changes of control easier (you change the directors rather than transferring every asset), keeps trust assets separate from personal assets and continues if a director dies. If you choose individual trustees, at least 2 are recommended, and every trust asset must be held in the names of all of them. If you use a company, have its name and ACN ready, and set it up before the deed is signed.