Today’s show is about trusts. A trust is another way to structure your business that has some unique benefits. Here are the 5 things you need to know about trusts.
A trust is a separate legal entity. That means that the people involved in the trust can’t be sued for the debt the trust incurs. So the separation is very important from a legal point of view, because it just separates out that liability and protects the people involved in the trust. So that’s number one. Number two beneficiaries.
Who is going to benefit from this trust? That decisions will have big ramifications for how the business operates. The beneficiary can be a person or a company. Or it could even be members of your family.
Power of appointment
This is someone in the trust will have the power to appoint and remove the trustee. That’s a lot of power. Never choose someone for this role that you don’t trust implicitly.
The trustee will manage the day-to-day affairs of the trust.
In Australia, there are great tax benefits to having a trust. You can distribute income, you can move things around and really get the best tax position for you and your family.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.