Order a family discretionary trust Family discretionary trust Step 1 of 5 20% The trustee/s of this family discretionary trust will be a company individuals A proprietary limited company is recommended as the trustee of a family discretionary trust. A proprietary company is preferred to an individual trustee or trustees because: a proprietary company with limited liability can extend limited liability to the trust as discretionary beneficiaries are generally not liable to trust creditors under the trust deed; the directors of a corporate trustee are generally not liable to trust creditors as the trustee is entitled to be fully indemnified from trust property under the trust deed: see section 197 of the Corporations Act 2001; significant costs of transfers of property and obligations, which can outweigh the costs of forming and keeping a proprietary company to act as corporate trustee, can be incurred when there is a change of trustee: with a corporate trustee there is generally no need to change the trustee and changes in family individuals involved can be accommodated by a change in directors of the company; there is less difficulty administratively keeping the property and affairs of the trust separate and distinct from the activities of the principal beneficiaries because the activities of the trust are clearly carried on the name of the corporate trustee; and where the trust holds dutiable property in New South Wales, the dutiable property of the trust can be fully dutiable on a change of trustee with concessional duty under sub-section 54(3) of the Duties Act (NSW) 1997, say to change to a corporate trustee at a later date, denied because variation of the trust deed can be problematic in complying with paragraphs 6 and 8 of NSW Revenue Ruling DUT 037. Name of the trust The NAME of a family discretionary trust is usually based on family names. Unlike a company name it does not need to be unique. FIRST appointor and (PRINCIPAL) BENEFICIARY by whom other beneficiaries are definedChildren, parents and other not so distant relations of this (principal) beneficiary (aka a primary beneficiary) and related companies and related trusts of this (principal) beneficiary will be included as beneficiaries (aka general beneficiaries). The children of the primary beneficiaries will be takers in default of appointment of the trust capital on the vesting of the trust. FIRST (Principal) BENEFICIARY - name* Mr.Mrs.MissMs.Dr.Prof.Rev. Prefix First Middle Last Full name (include middle name/s)Is this FIRST (principal) beneficiary also an APPOINTOR? Yes. No. NOTES Ordinarily a principal beneficiary will also be an appointor. An appointor can appoint and remove trustees and certain major trustee decisions under the trust deed require the consent of the appointor. Family law advice should be taken before a principal beneficiary who is the spouse of another principal beneficiary is excluded from being an appointor. We agree with the view expressed by Dr. John Glover in his article A challenge to established law on discretionary trusts? - Re Richstar Enterprises Australian Bar Review, v.30, no.1, Nov 2007, p.70-89 (ISSN: 0814-8589) where the author explains why an appointor able to 'effectively control' a discretionary trust is not attributed with 'at the very least a contingent interest' in the assets of the trust under the law despite the decision in that case. Is this FIRST (principal) beneficiary a DIRECTOR of the trustee? Yes. No. Is this FIRST (principal) beneficiary an INDIVIDUAL TRUSTEE? Yes. No. Address of FIRST beneficiary/individual trustee Street Address Address Line 2 City State Postcode AfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBonaire, Sint Eustatius and SabaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos IslandsColombiaComorosCongo, Democratic Republic of theCongo, Republic of theCook IslandsCosta RicaCroatiaCubaCuraçaoCyprusCzech RepublicCôte d'IvoireDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEswatini (Swaziland)EthiopiaFalkland IslandsFaroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard and McDonald IslandsHoly SeeHondurasHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyaLiechtensteinLithuaniaLuxembourgMacauMacedoniaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorth KoreaNorthern Mariana IslandsNorwayOmanPakistanPalauPalestine, State ofPanamaPapua New GuineaParaguayPeruPhilippinesPitcairnPolandPortugalPuerto RicoQatarRomaniaRussiaRwandaRéunionSaint BarthélemySaint HelenaSaint Kitts and NevisSaint LuciaSaint MartinSaint Pierre and MiquelonSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint MaartenSlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth GeorgiaSouth KoreaSouth SudanSpainSri LankaSudanSurinameSvalbard and Jan Mayen IslandsSwedenSwitzerlandSyriaTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanTurks and Caicos IslandsTuvaluUS Minor Outlying IslandsUgandaUkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguayUzbekistanVanuatuVenezuelaVietnamVirgin Islands, BritishVirgin Islands, U.S.Wallis and FutunaWestern SaharaYemenZambiaZimbabweÅland Islands Country ADD another Appointor and (principal) Beneficiary by whom other beneficiaries are defined No Yes The SECOND Appointor and (principal) Beneficiary is added where the FIRST Appointor and (principal) Beneficiary has a spouse.SECOND appointor and (PRINCIPAL) BENEFICIARY by whom other beneficiaries are definedChildren, parents and other not so distant relations of this (principal) beneficiary (aka a primary beneficiary) and related companies and related trusts of this (principal) beneficiary will be included as beneficiaries (aka general beneficiaries). The children of the primary beneficiaries will be takers in default of appointment of the trust capital on the vesting of the trust.SECOND (Principal) BENEFICIARY - name* Mr.Mrs.MissMs.Dr.Prof.Rev. Prefix First Middle Last Full name (include middle name/s)Is this SECOND (principal) beneficiary also an APPOINTOR? Yes. No. NOTES Ordinarily a principal beneficiary will also be an appointor. An appointor can appoint and remove trustees and certain major trustee decisions under the trust deed require the consent of the appointor. Family law advice should be taken before a principal beneficiary who is the spouse of another principal beneficiary is excluded from being an appointor. We agree with the view expressed by Dr. John Glover in his article A challenge to established law on discretionary trusts? - Re Richstar Enterprises Australian Bar Review, v.30, no.1, Nov 2007, p.70-89 (ISSN: 0814-8589) where the author explains why an appointor able to 'effectively control' a discretionary trust is not attributed with 'at the very least a contingent interest' in the assets of the trust under the law despite the decision in that case. Is this SECOND (principal) beneficiary a DIRECTOR of the trustee? Yes. No. Is this SECOND (principal) beneficiary an INDIVIDUAL TRUSTEE? Yes. No. A proprietary company is to be generally to be preferred for reasons set out on Page 1 of this form. If despite those reasons the principals still seek individual trustees then TWO individual trustees are generally preferable to ONE individual trustee. Reasons include: with two trustees it is less likely that the trust will be considered a sham: see Raftland Pty Ltd as trustee of the Raftland Trust v Commissioner of Taxation [2008] HCA 21; and with a single individual trustee there will be times where the trustee will have great difficulty keeping and demonstrating that the activities of the trustee are distinct from the trustee's own personal affairs. Does the SECOND (principal) beneficiary RESIDE with the FIRST (principal) beneficiary Yes. No. Address of SECOND beneficiary/individual trustee Street Address Address Line 2 City State Postcode AfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBonaire, Sint Eustatius and SabaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos IslandsColombiaComorosCongo, Democratic Republic of theCongo, Republic of theCook IslandsCosta RicaCroatiaCubaCuraçaoCyprusCzech RepublicCôte d'IvoireDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEswatini (Swaziland)EthiopiaFalkland IslandsFaroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard and McDonald IslandsHoly SeeHondurasHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyaLiechtensteinLithuaniaLuxembourgMacauMacedoniaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorth KoreaNorthern Mariana IslandsNorwayOmanPakistanPalauPalestine, State ofPanamaPapua New GuineaParaguayPeruPhilippinesPitcairnPolandPortugalPuerto RicoQatarRomaniaRussiaRwandaRéunionSaint BarthélemySaint HelenaSaint Kitts and NevisSaint LuciaSaint MartinSaint Pierre and MiquelonSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint MaartenSlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth GeorgiaSouth KoreaSouth SudanSpainSri LankaSudanSurinameSvalbard and Jan Mayen IslandsSwedenSwitzerlandSyriaTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanTurks and Caicos IslandsTuvaluUS Minor Outlying IslandsUgandaUkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguayUzbekistanVanuatuVenezuelaVietnamVirgin Islands, BritishVirgin Islands, U.S.Wallis and FutunaWestern SaharaYemenZambiaZimbabweÅland Islands Country Exclusion of foreign person beneficiariesFamily trusts that acquire and hold residential land in various Australian jurisdictions are now subjected to high land tax and stamp duty surcharges as foreign trusts unless the trust deed of the trust excludes foreign persons, broadly persons who are neither resident of Australia nor citizens of Australia, from ever being a beneficiary of the trust. For more information see our blog post Australia is now tracking & surcharging foreign buyers of land Exclusion of foreign person beneficiaries if trust may hold residential land in any of these places (select ALL that apply or or place most likely where trust may own residential land)New South WalesVictoriaQueenslandSouth AustraliaAustralian Capital TerritoryAre foreign person beneficiaries to be excluded as beneficiaries under the trust because residential real estate may be acquired in the below places in the trust or should foreign persons be excluded as beneficiaries in any case? COMPANY - the corporate trustee of the trustWhich company is to be the trustee of the trust?Has the COMPANY been formed? Yes. No. Name of the COMPANY that is to be the trustee of the SMSF ACN of the COMPANY Please enter the Australian Company Number WITHOUT spaces. Verify the ACN of the COMPANY here with ASIC searching within organisations and business namesIs the registered office of the COMPANY at the address given for the FIRST member? Yes. No. Address of the registered office of the COMPANY Street Address Address Line 2 City State or Territory Postcode Must be a street addressARE there any directors of the COMPANY who are not the primary beneficiaries whose details have already been given above? No. Yes. Name of a DIRECTOR of the company whose details have NOT already been given above as a (principal) BENEFICIARY First Middle Last Please enter the full name, including middle names (if any), of the director of the company that will be the trustee of this trustARE there any more directors of the COMPANY who are not the primary beneficiaries whose details have already been given above? No. Yes. Name of another DIRECTOR of the company whose details have NOT already been given above as a (principal) BENEFICIARY First Middle Last Please enter the full name, including middle names (if any), of the director of the company that will be the trustee of this trustCAN the directors of the company complete and all sign a WRITTEN document with DIRECTORS RESOLUTIONS' instead of holding a directors' meeting under the constitution (or articles of association) of the company? Yes. No. ARTICLE (clause) number of the constitution of the corporate trustee which permits the directors to complete and sign a written document rather than holding a directors's meeting In many constitutions, this ARTICLE is last or near last under the heading DIRECTORS PROCEEDINGS or PROCEEDINGS OF DIRECTORS SettlementNotes To establish a family discretionary trust a settlor must make a gift of the settled sum to the trustee. Payment of the settled sum to the trustee is important as the gift by the settlor of the settled sum is the event that creates the family discretionary trust. The trustee continuing to keep and secure the settled sum is how trust property is maintained so the trust does not vest even if the trust goes into negative equity. A government authority or, especially, a lender can ask the principals to show and verify that the trust was established by the gift of the settled sum and that the settled sum is retained. Is the SETTLED SUM to be ten dollars ($10) or some other amount? Yes. The SETTLOR should be someone who is: an adult friend of the family genuinely interested in the well-being of the family to benefit under the trust; outside of the family; and other than a professional such as an accountant of the family where there could be an argument that the gift to settle the trust is reimbursed through the professional's fees - in any case, the private residential address rather than the professional or work address of the settlor should be provided. SETTLOR - name* Mr.Mrs.MissMs.Dr.Prof.Rev. Prefix First Middle Last Full name (include middle name/s) - the settlor is a party to the trust deedAddress of SETTLOR Street Address Address Line 2 City State Postcode AfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBonaire, Sint Eustatius and SabaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos IslandsColombiaComorosCongo, Democratic Republic of theCongo, Republic of theCook IslandsCosta RicaCroatiaCubaCuraçaoCyprusCzech RepublicCôte d'IvoireDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEswatini (Swaziland)EthiopiaFalkland IslandsFaroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard and McDonald IslandsHoly SeeHondurasHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyaLiechtensteinLithuaniaLuxembourgMacauMacedoniaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorth KoreaNorthern Mariana IslandsNorwayOmanPakistanPalauPalestine, State ofPanamaPapua New GuineaParaguayPeruPhilippinesPitcairnPolandPortugalPuerto RicoQatarRomaniaRussiaRwandaRéunionSaint BarthélemySaint HelenaSaint Kitts and NevisSaint LuciaSaint MartinSaint Pierre and MiquelonSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint MaartenSlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth GeorgiaSouth KoreaSouth SudanSpainSri LankaSudanSurinameSvalbard and Jan Mayen IslandsSwedenSwitzerlandSyriaTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanTurks and Caicos IslandsTuvaluUS Minor Outlying IslandsUgandaUkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguayUzbekistanVanuatuVenezuelaVietnamVirgin Islands, BritishVirgin Islands, U.S.Wallis and FutunaWestern SaharaYemenZambiaZimbabweÅland Islands Country About you and your orderYour name* Your phone (with area code)*Your email address* Enter Email Confirm Email CommentsIs there anything else about this family discretionary trust or this order you want to let us know about before you submit it? CAPTCHACommentsThis field is for validation purposes and should be left unchanged.
