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Establishing your family trust
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Set up your Family trust with TMS Financials

At TMS Financials, we understand the importance of properly setting up a family trust. A family trust is more than just a way to manage assets—it’s a strategic tool for asset protection and tax planning, complying with the legal standards in Australia. Our team is skilled in guiding you through each step, ensuring your family trust meets both your personal needs and tax responsibilities.

Setting up a family trust involves creating a family trust deed, a legal document that outlines the management of trust assets by a corporate trustee. This arrangement allows family members to manage a family business or other assets within a legally recognised structure. By establishing a family trust, you can enjoy asset protection benefits while ensuring the family group can pay tax in a tax-effective structure.

We handle all the essential legal documents and ensure your trust complies with all laws and regulations. This includes drafting the trust deed, which directs how the trust’s income is distributed to beneficiaries, and navigating the complexities of Capital Gains Tax (CGT). Our experts make these processes straightforward. By working with TMS Financials, you can be confident that your family trust is set up correctly right from the beginning. This allows you to focus on what matters most—protecting and securing your family’s financial future.

Why choose TMS Financials?

Asset Protection and Tax Benefits

Creating a family trust can help protect your trust assets and offer tax benefits, particularly with capital gains and income distributions. Setting up such a trust ensures that personal and family assets are legally shielded, reducing financial risks. Our team at TMS Financials assists you in understanding the details of trust deeds, including discretionary trust deed, while ensuring you meet all obligations with the relevant tax authorities and maximise your tax benefits in Australia.

Strategic Planning for Families and Businesses

A family trust, managed by a corporate trustee, can provide significant advantages for your family business. We guide you in structuring your trust to effectively manage the distribution of income and assets among family members, potentially leading to considerable tax savings. Our strategy includes managing stamp duty and establishing trust bank accounts, positioning your family and business for future growth and security.

Complete Legal and Financial Support

Our expertise spans all aspects of establishing and managing a family trust. From drafting the initial trust deed to obtaining a Tax File Number (TFN) and Australian Business Number (ABN), we provide comprehensive support. We advise on selecting trustees, whether they’re individuals or a legal entity, and on the management of trust properties and assets for tax efficiency. Additionally, we offer continuous support through annual trustee meetings to ensure your trust operates effectively and aligns with your financial objectives.

Protect your assets with TMS Financials

Our team at TMS Financials specialises in providing personalised tax solutions tailored to your unique situation. We can help you navigate through the complexities of tax planning, identify the most effective strategies for your situation, and ensure you maximise your tax savings.

We’re an Australian tax accounting firm with 30+ years of experience serving business owners and investors. Our reputation for reliability and exceptional client service is built on providing accurate financial advice and asset protection. We remain committed to serving our clients with integrity, professionalism, and quality, and have the expertise to help you succeed.

TMS Financials is online now

We are a Sydney based tax accounting firm servicing clients Australia wide online since 1993

Eng Sivieng

Principal of TMS Financials

We strive to build long-term relationships with our clients and to be a trusted advisor for all their financial needs.

Establishing Your Family Trust with TMS Financials

TMS Financials is dedicated to assisting you in establishing a family trust that addresses your specific needs. Whether your goals include protecting assets, securing the future of a family business, or efficiently managing tax duties, our team provides comprehensive support from start to finish.

Setting up your Family Trust

We guide you in drafting a family trust deed, a vital document that details the legal framework and management terms of the trust. This involves selecting the best type of trust for your situation, whether it’s a discretionary trust for adaptable benefits for beneficiaries, or one managed by a corporate trustee for stronger oversight.

Asset management and benefit distribution

We offer strategies to protect and effectively manage your family’s assets within the trust. This includes planning for the distribution of income and capital gains in ways that optimise tax benefits, tailored to meet the strategic goals of your trust. We also help define clear roles and benefits for primary and other relevant beneficiaries to manage your assets according to your preferences.

Navigating legal and tax compliance

Our team ensures your trust adheres to all required legal standards and tax regulations. This includes registering with the necessary tax authorities, obtaining a Tax File Number (TFN), and setting up a dedicated bank account for the trust. We also handle any necessary payments, such as stamp duty, to ensure full compliance.

Ongoing support and strategy advice

Establishing your trust is merely the beginning. TMS Financials provides ongoing support to ensure your trust functions as it’s intended to, facilitating trustee meetings and offering continued advice on trust management. Our aim is to make sure your family trust is responsive to changes in both your family’s circumstances and legislative adjustments.
By choosing TMS Financials, you benefit from our deep understanding of the complexities involved in setting up and maintaining family trusts. We offer tailored, professional guidance and practical solutions to secure the effectiveness and success of your trust for the future.

Advantages of establishing a family trust

When you establish a family trust, you’re making a strategic decision that provides multiple advantages, including significant asset protection benefits. This helps safeguard your family’s assets from legal claims and financial uncertainties, ensuring your wealth is preserved for future generations.

Tax management

A family trust serves as an efficient tax management tool. It allows for strategic tax planning, enabling the distribution of income and capital gains among beneficiaries in a manner that may reduce their overall tax liability.

Flexibility in income distribution

Family trusts provide the flexibility to tailor how benefits are distributed among family members. This allows you to address their individual financial needs while maximising overall financial advantages.

Strategic property investment

Using a family trust for property investments often offers greater flexibility than other investment structures, such as Self-Managed Super Funds (SMSFs).

Asset protection

Setting up a family trust offers a safeguard for your assets, including business interests and investments. It protects these assets from personal financial risks and liabilities, giving you greater security and confidence.

Future security

A family trust enhances the stability and continuity of your business or investments, securing them against uncertainties and changes over time.

Capital Gains Tax advantages

Family trusts also offer potential tax benefits related to Capital Gains Tax (CGT). If assets within the trust are held for more than a year, beneficiaries may be eligible for a 50% discount on CGT, which can present a considerable tax saving compared to other entities like companies.

Types of family trusts

Hybrid trust
A hybrid trust blends the certainty of unit trusts with the versatility of discretionary trusts, making it suitable for targeted asset distribution and tax planning.
Family protection trust (non-foreign person)
This type of discretionary trust is designed for wealth transfer and asset protection, complying with the Bamford decision to support succession planning for family heads.
Discretionary trust (individual and corporation)
A discretionary trust offers asset protection and potential tax advantages for small businesses by facilitating income and capital distribution to corporate entities, enabling varied beneficiary designations.
Leading member discretionary trust (individual and corporation)
Specifically for small business owners, this trust focuses on the succession of the appointor’s role to their direct descendants, improving asset protection and facilitating wealth transfer.
Discretionary trust (non-foreign person)
This trust limits distributions to Australian citizens and permanent residents, providing discretionary control while preventing surcharges that apply to foreign beneficiaries.
Leading member discretionary trust (non-foreign person)
This trust permits a family’s leading member to manage and transfer control of the trust to successors without involving foreign persons, ensuring adherence to local regulations regarding surcharges.
Family protection trust (individual and corporation)

Focused on asset protection and strategic wealth transfer, this trust aims for succession for family leaders, emphasising long-term stability and security.

Need professional guidance setting up a family trust in Sydney?

Setting up a family trust is not compulsory, but the benefits are considerable. Family trusts can protect your family’s assets, streamline your tax management, and lay a strong foundation for your future financial planning. Our team is experienced in handling the complexities of trust formation and provides informed, current advice tailored to your specific needs. Whether you aim to protect your personal and business assets, address inheritance issues, or simply seek the confidence that comes with expert guidance, we’re here to help.

Contact us today to discover how our dedicated services can assist you in effectively establishing and managing your family trust.

Contact us today for a consultation.

Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!

Set up your family trust today

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