Steps to Set Up a Trust Fund
- Step 1: Choose the right type of trust. Before you set up a trust fund, think about the purpose it will serve.
- Step 2: Outline the details. There are four components of a trust fund:
- Step 3: Make it official.
- Step 4: Fund the trust.
- Step 5: Register your fund with the the IRS.
Can I set up a trust to buy property?
Ideally, you should set up a trust before choosing a property to buy. Then, instead of buying the house yourself, you lend the deposit money to the trust fund. The trust then makes the purchase using a mortgage. Banks will usually ask for you to be a guarantor for the funds.
Which is the best way to set up a trust?
A trust is a legal structure that contains a set of instructions that includes exactly how and when to pass assets to your beneficiaries. There are dozens of trust structures available, and only after careful consideration should you determine the type of trust that works best for you.
What does it mean to have a simple trust?
Also known as a “simple trust,” property or assets in this form are held in the name of a trustee who has no discretion over what income is paid to the beneficiary and has no active duties to perform.
How is a trust set up to split income?
The trustee, which is usually the company itself, operates as a business for the benefit of beneficiaries (you as the director and your family). Although a trust is a great way to income split and leverage the marginal tax rate of your beneficiaries, the initial and ongoing administration costs can be high. How is a trust set up?
How to find out more about trust structures?
If you would like more information on trust structures and want to learn more about the most appropriate type of trust or trusts for your situation, please click here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.
