When is the best time to set up a trust

If you’re considering a discretionary or family trust but aren’t sure if it’s the right time, the decision usually comes down to one key factor: tax.
A trust structure often becomes relevant when your passive assets are generating enough income that holding them in your own name creates a tax problem. For example, a large investment portfolio held personally can push you into the top marginal tax bracket very quickly.
A family trust can provide flexibility around how that income is distributed. While you can still direct income to yourself if needed, the structure also allows income to be distributed to other beneficiaries such as a spouse, adult children or parents, depending on the trust deed.
This can help spread income across the family group rather than having it all taxed in one person’s name at a high marginal rate. Like any structure, it’s not about complexity for the sake of it, but about using the right structure at the right time.
General advice only. Based on Australian regulations.
Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

----------------------------------------------------------------

More Freebies you should check out

Ebooks, Online Courses, Video Blogs, Podcasts | Free resources covering a range of financial fundamentals to build your knowledge*

https://www.consortiumpw.com.au/elearning/

*Follow us on our social media *

Website: https://www.consortiumpw.com.au/
Instagram: https://www.instagram.com/consortiumprivatewealth/
Facebook Page: https://www.facebook.com/consortiumpw
TikTok: https://www.tiktok.com/@rob_goudie

To contact us directly please email info@consortiumpw.com.au or call 03 5382 3460. We're here to help!

Advice Disclaimer || Any advice given by the presenter/s has been prepared without considering your individual objectives, financial situation or needs. So, before you act on the advice you should think about whether the advice suits your objectives, financial situation or needs. If the advice relates to acquiring a financial product you should obtain a copy of the Product Disclosure Statement for that product and consider it before making a decision. This presentation has been prepared by Consortium Private Wealth Pty Ltd (ABN 74 616 250 965) (AFSL 495401). If you require advice which takes into account your objectives, financial situation and needs you should speak to a financial adviser.

Robert Goudie (ASIC Reg 235974), Ashley Rowan (ASIC Reg 433899), Olivia Glare (ASIC Reg 1262290), Rachael Todman (ASIC Reg 1270413) & Amy Lehmann (ASIC Reg 1292710) are Authorised Representatives of Consortium Private Wealth Pty Ltd ABN 74 616 250 965 AFS Licence 495401.