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 27 YEARS EXPERIENCE PROTECTING ASSETS WITH 100% SUCCESS RATE

We offer asset protection services through one of the most effective discretionary trusts available to people wanting to protect their assets. Including but not limited to real tangible property, commercial, private, residential, vehicle, crypto currencies, stocks, bonds, precious metals, or any other assets or commodities to which 100% equity is owned.

–        Ability to change beneficiary

–        Absolute discretion of trustee

–        Private governance and jurisdiction of the trust

–        Privacy and confidentiality assurance

–        Private minutes available by application

–        Trustee indemnity

–        Discretionary powers of delegation

–        Ability to operate privately

–        Infant, child, offspring and property protection

–        Ability to engage in lending and borrowing

–        Ability to engage in commerce with or transfer funds and/or assets to mother trusts or entities

–        Income protection

–        Document copyrighted

We keep our trust deed an absolute secret due to others trying to gain access to it for the key factors that make it impossible to penetrate. For further information about KSGH Security Discretionary trusts please contact us.

Ordinary Discretionary Trust

An ordinary discretionary trust differs from other trust in that the beneficiaries do not have a fixed entitlement or fixed interest in the trust funds. Instead, the trust deed of the trust generally defines the potential beneficiaries of the trust very broadly, and the trustee is then given complete discretion to determine which of these persons are to receive the capital and income of the trust and how much each of them can receive.Therefore, the persons for whose benefit the trustee holds the trust property are not technically beneficiaries of the trust until the trustee has exercised its discretion to distribute income of capital to them. Until that time, a person to whom the trustee can appoint income of capital is an “object” of the trust; i.e., they are each potential beneficiaries until the discretion is exercised in their favour. Nonetheless, although they are technically different, “beneficiary” and “object” are often used interchangeably.It is common for discretionary trusts to have a very wide range of objects including entities such as companies with different shareholders, trustees of other trusts, family members or children. However, these objects must be described with sufficient certainty so that it can be determined, at any point in time, whether or not a particular organisation, individual or entity is or is not a member of the range of objects. If not the trust could be void for uncertainty.It may be an accepted view that an object of a discretionary trust does not have a proprietary interest in the property of the trust – they only have the right to compel the due administration of the trust estate and the right to be considered by the trustee. However, a default beneficiary does have a contingent interest in the property of the trust. That is, a default beneficiary has an interest which is contingent upon the trustee not otherwise exercising its discretion, so that a default clause in the trust deed will apply to distribute part or all of the income of corpus of the trust to that default beneficiary. ATO is of the view that neither an ordinary beneficiary nor a default beneficiary has an ‘interest’ in a discretionary trust.

Advantages

          Streaming of income to lower tax rate beneficiaries

          The small business concessions can flow to the ultimate owners with no reduction in value

          Trust deed can be tailored to the needs of principals and beneficiaries

          Can make flexible distributions of income and capital

          50% discount method for work out CGT is available

          The small business concessions can be accessed.

          For income distribution, you can employ principals and provide salary packaging.

          Simple to wind up

          Asset protection available through correctly drafted trust deed

          Extra asset protection available through use of a corporate trustee

Disadvantages

          Unless class of beneficiaries is sufficiently broad when trust established risk of resettlement when beneficiaries added.

          Accumulated income is taxed at top marginal rate

          Losses are trapped in the structure

          The complex trust loss provisions apply

          Cannot transfer losses to other controlled entities like companies

          Clients can have trouble understanding all terms of deed

          More costly than sole trader and/or company

          Beneficiaries can be subject to complex PAYG calculations

          May be restricted in who it can deal with after making a family trust election

          Varying the terms or objects of the trust can amount to a resettlement and have CGT and stamp duty consequences

          Trustees can be personally liable for the debts of the trust

          Are not entitled to the tax exempt threshold for land tax purposes

Family Trust

Although many discretionary trusts (and even some unit trusts) are often referred to as “family trusts”; i.e., having been set up to benefit a particular family, references, in these notes to a “family trust” are references to a family trust as defined for tax purposes in the trust loss provisions of Schedule 2F of the ITAA 1936. A trust needs to specifically elect to be a family trust for these purposes. Family trusts are discussed later in these seminar notes.A family trust:

          is generally established by a family member for the benefit of members of the ‘family group’;

          can be the subject of a family trust election which provides it with certain tax advantages, provided that the trust passes the family control test and makes distributions of trust income only to beneficiaries of the trust who are within the ‘family group’;

          can assist in protecting the family group’s assets from the liabilities of one or more of the family members (for instance, in the event of a family member’s bankruptcy or insolvency);

          provides a mechanism to pass family assets to future generations; and

          can provide a means of accessing favourable taxation treatment by ensuring all family members use their income tax “tax-free thresholds”.

Advantages

  The Trustee has decision making power at their discretion.

  Flexible, because the profits are distributed in accordance with the Trustee’s wishes.

          Confidential – there is no searching of any register.

Disadvantages

          The Trust must run in accordance with the rules of the Trust Deed, and the Common Law of Trusts will imply many rules;

          A Trust has no separate legal entity from the Trustee. Thus, the Trustee is responsible for the liabilities of the Trust;

          Since the Trustee is liable, the Trustee may have to be a company to protect personal assets; and          Onerous Trustee duties apply.

KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.  

Overview of Trust Structures

If you are considering setting up a Trust Structure it is important to call or email us so that we may create clarity for you to protect your current and future assets from unwanted eyes. There are many advantages and disadvantages associated with the various trust structures and if one has not been set up correctly to suit your situation it can really have an unfavourable effect on your assets in the future. Therefore it is important to get advice on the best trust structure for you or your business in accordance with your present and future needs.KSGH SECURITY can inform you of your choices and help you with your discretionary trust structure to give you or your business the best possible advantage.The most common Trust Structures are:         

Charitable Trust

Child Maintenance Trust        

Discretionary & Family Trusts         

Fixed Trust       

Hybrid Trust       

Private Trust      

Service Trust         

Superannuation Fund     

Testamentary Trust

Unit & Fixed Unit Trust

Other Trusts

Fixed Trust

Under a fixed trust, the beneficiaries have a fixed interest in the assets of the trust and a fixed entitlement to income.Note that a unit trust is not necessarily a “fixed trust”.

Advantages

Companies offer the advantages of limited liability for the shareholders.The imputation tax system ensures that if the company has paid tax, then the shareholders will get a credit for that tax paid.

Income tax advantages
  • Net income in a financial year is distributed amongst unit holders. This distribution has to be included in the unit holders’ income in the financial year when the trust has earned the income and not the year when the income is distributedThe classification of trust income, for example, dividend income, foreign income, or capital gain continues to be recognized under the same classification in the individual unit holder’s income tax return and any imputation credit or foreign tax credits follows through to the unit holder as per trustee’s distributionIn certain circumstances, if unit holders are under 18 years of age, by any income distribution to them, trustees can avail their tax free threshold.> The trustee of a fixed unit trust must distribute all income of the trust and cannot accumulate income of the trustOnly net income of the trust has to be distributed, a trust can also contribute superannuation for all unit holders in proportion to their unit holding, which means that tax on income of the trust can be limited to tax rate on contribution to a superannuation fund, which at the time of writing is 15%If the fixed unit trust has a loss and has received imputation credits in the financial year, the trustee can lodge its own income tax return and carry forward the loss to the next financial year and claim a refund of imputation creditsIf units are owned via family trusts – various income tax, asset protection and estate planning advantages connected to family trusts are also available to unit holder.
  • Capital Gains tax advantageson disposal of any asset of the trust, all unit holder are entitled to a 50% discount factor on capital gains. If assets are disposed after one year, this discount flows through to the unit holder’s upon distribution of capital income.Asset Protection advantages
  • Any distribution to a unit holder need not be physically paid to them. If the unit holders agree, trustee can retain money which it has decided to distribute to unit holders and establish a bare trust for that unit holder within the fixed unit trust.Money’s belonging to unit holders who are under a legal disability, like minors; distribution money from a fixed unit trust, can be held by the trustee, under a bare trust arrangement, till they reach 18 years of age.
  • Land tax advantages

  • This fixed unit trust is treated as a “fixed unit trust” within the scope of Land Tax legislation in many states. What this means is that this fixed trust will receive threshold available to trustees who own land under this trust deed structure.For example Section 3A Land Tax Management Act 1956 of NSW states a trust is a “fixed trust” if equitable estate in all of the land that is the subject of the trust is owned by a person or persons who are owners of the land for land tax purposes and equitable interest of the trustee as trustee of the trust is to be disregarded. That means that the persons who are beneficiaries of the trust (unit holders) under the trust deed are taken to be the owners of an equitable estate in the land that is subject to the trust.This equitable interest is created because this trust deed specifically provides that the beneficiaries of the trust are presently entitled to the income of the trust and capital of the trust and can require the trustee to wind up the trust and distribute the trust property to the unit holders.
  • Disadvantages

  • This trust cannot distribute capital or revenue losses to its beneficiaries. Which means that any losses have to be carried forward till a profit is achieved. As a result, should a trust incur a net loss, its beneficiaries, may be wise to have debt held at the unit holder level, rather than at the trust level, to avoid negative gearing type losses being locked up in the trust.In a Fixed Unit Trust there is no discretion with the trustee as all income of the trust has to be distributed to the unit holders
  •  KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Unit & Fixed Unit Trusts

    Unit Trust

    A unit trust is as trust in which the trust property is divided into a number of defined shares called units. The beneficiaries subscribe for the units in much the same way as shareholders in a company subscribe for shares.In an ordinary unit trust, a beneficiary (or unit holder) is entitled to the income and capital of the trust in proportion to the number of units held. Like a company, it is possible for a unit trust to have different types of units with different rights attached.Unlike a beneficiary of a discretionary trust, who has no proprietary interest in the property of the discretionary trust, a unit holder in a unit trust may have a proprietary interest in that property, generally being a relevant proportion of all the property of the unit trust, although this will depend on the terms of the trust deed. However, for CGT purposes, a unit is a CGT asset so that when a unit is sold it is the unit that is the relevant CGT asset, rather than any interest the unitholder might have in the underlying property of the unit trust. Refer TD 2000/32.Advantages Easy to introduce new equity partners – no value shifting rulesLess regulations than a company When non-related parties are in trust together interests are fixed50% discount method for work out CGT is available. The small business concessions can be accessed.Simple to wind up Asset protection available through correctly drafted trust deed No regulator Substantiation rules less onerous than those imposed on individuals

    Disadvantages

    Although the unit holders of a unit trust may assume they have a fixed interest to the income and capital of the trust, the trust will really only be considered a “fixed trust” for purposes of the trust loss rules in Schedule 2F of the ITAA 1936 if it can be shown that:Persons (i.e. individuals, companies, trusts, etc.) have fixed entitlements to all of the income and capital of the trust; andThe trust deed contains a clause that states that units can only be redeemed or issued for a price determined on the basis of the net asset value, according to Australian accounting principles, of the unit trust at the time of redemption or issue (refer S.272-5 of Schedule 2F).If the trust deed allows for other methods of valuing new units or the redemption of units then the trusts, even if it is a unit trust with no discretionary elements, will be a “non-fixed trust” for the purposes of the trust loss rules. Such a trust will need to satisfy more tests than a fixed trust if it is to carry forward its losses.Advantagesa) Income tax advantages

  • Net income in a financial year is distributed amongst unit holders. This distribution has to be included in the unit holders’ income in the financial year when the trust has earned the income and not the year when the income is distributedThe classification of trust income, for example, dividend income, foreign income, or capital gain continues to be recognized under the same classification in the individual unit holder’s income tax return and any imputation credit or foreign tax credits follows through to the unit holder as per trustee’s distributionIf unit holders are under 18 years of age, by any income distribution to them, trustees can avail their tax free thresholdThe trustee of a fixed unit trust must distribute all income of the trust and cannot accumulate income of the trustOnly net income of the trust has to be distributed, a trust can also contribute superannuation for all unit holders in proportion to their unit holding, which means that tax on income of the trust can be limited to tax rate on contribution to a superannuation fund, which at the time of writing is 15%If the fixed unit trust has a loss and has received imputation credits in the financial year, the trustee can lodge its own income tax return and carry forward the loss to the next financial year and claim a refund of imputation creditsIf units are owned via family trusts – various income tax, asset protection and estate planning advantages connected to family trusts are also available to unit holders
  • b) Capital gains tax advantages
  • On disposal of any asset of the trust, all unit holders are entitled to a 50% discount factor on capital gains, if assets are disposed after one year, this discount flows throw to unit holders’ on distribution of capital income
  • c) Asset Protection Advantages
  • Any distribution to a unit holder need not be physically paid to them. If the unit holders agree, trustee can retain money which it has decided to distribute to unit holders and establish a bare trust for that unit holder within the fixed unit trustMoney’s belonging to unit holders who are under a legal disability, like minors; distribution money from a fixed unit trust, can be held by the trustee, under a bare trust arrangement, till they reach 18 years of age
  • d) Land Tax
  • This fixed unit trust is treated as a “fixed unit trust” within the scope of Land Tax legislation in many states. What this means is that this fixed trust will receive threshold available to trustees who own land under this trust deed structureFor example Section 3A Land Tax Management Act 1956 of NSW states a trust is a “fixed trust” if equitable estate in all of the land that is the subject of the trust is owned by a person or persons who are owners of the land for land tax purposes and equitable interest of the trustee as trustee of the trust is to be disregarded. That means that the persons who are beneficiaries of the trust (unit holders) under the trust deed are taken to be the owners of an equitable estate in the land that is subject to the trust.This equitable interest is created because this trust deed specifically provides that the beneficiaries of the trust are presently entitled to the income of the trust and capital of the trust and can require the trustee to wind up the trust and distribute the trust property to the unit holders
  • Disadvantages

  • This trust cannot distribute capital or revenue losses to its beneficiaries. Which means that any losses have to be carried forward till a profit is achieved. As a result, should a trust incur a net loss, its beneficiaries, may be wise to have debt held at the unit holder level, rather than at the trust level, to avoid negative gearing type losses being locked up in the trustIn a Fixed Unit Trust there is no discretion with the trustee as all income of the trust has to be distributed to the unit holders
  • KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Hybrid TrustA hybrid trust, as the name suggests, is generally a hybrid of a discretionary and a unit trust. The term “hybrid trust” is a generic term for a trust which has elements similar to both discretionary and unit trusts, and there are many different forms of hybrid trusts. Therefore, when a tax practitioner talks about a hybrid trust they could be referring to one of a number of different forms of hybrid trust.One common form of hybrid trust endeavors to combine the best elements of a unit trust with the best elements of a discretionary trust in the one entity, and has both unit holders and discretionary beneficiaries. The trustee has the discretion to distribute income to the discretionary beneficiaries, and the unit holders then have a right to receive income and capital that has not been distributed to a discretionary beneficiary. Alternatively, the unit holders may be entitled to all of the income of the trust, but may have a right to redeem their units for face value, at which point the trustee will have complete discretion when distributing income (and capital).Whilst there may be valid non-tax reasons for establishing such a structure, the ATO has stated that the tax benefits often marketed in relation to them (such as the unit holders being able to claim a deduction for any interest payments and other borrowing costs incurred to acquire the units) will not be available. Refer to TD 2008/D16 and TA 2008/3.There are many versions of hybrid trusts, and not all of them have been targeted by the ATO. In addition, there may be legitimate non-tax reasons to use a hybrid trust structure, such as those set out for a Class Trust.

    KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Child Maintenance Trust

    This is a trust established in accordance with S.102AG(2)(c)(viii). Similar to a testamentary trust, income distributed to minor beneficiaries from a child maintenance trust is not taxed at the penal rates of tax under Division 6AA.

    KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Charitable Trust

    A charitable trust is a trust established specifically for charitable purposes. The main differences charitable trusts have with other types of trusts are:Generally the “rule against perpetuities” does not apply to them so they may exist forever;They are trusts for charitable purposes only (e.g., to relieve poverty) and therefore there are no specifically named beneficiaries;Because of their public nature they are heavily controlled by the courts and legislation; andThere are significant tax concessions.

    Advantages

  • Charitable trusts have significant taxation benefits. There are two key endorsements from the Australian Taxation Office (ATO) that are relevant to tax exemptions.A ‘charitable’ entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997);Division 30 allows for tax deductions for gifts made to certain entities endorsed by the Commissioner of Taxation as ‘deductible gift recipients’ (DGR).
  • Charitable trusts are also given tax concessions under fringe benefits legislation. The Fringe Benefits Tax Assessment Act 1986 (FBTAA) allows for a benefit provided to an employee of a public benevolent institution to be exempt from the fringe benefits tax (FBT).A charitable discretionary trust does not have to file tax returns.Charitable discretionary trusts do not have to be wound up after 80 years.

    Disadvantages

  • The objects are limited to charitable purposes in the charitable discretionary trustThe beneficiaries cannot be limited to the claimant group only in a charitable discretionary trust. They can however be limited to Aboriginal people living in a particular area, and may be able to give preference to the claimant group.Charitable discretionary trusts are subject to supervision
  • KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Service Trust

    This is a generic name applied to any type of trust (e.g., discretionary, unit or hybrid) which is being used to provide services to a professional practice or other business entity. It is usually controlled by the owners of the professional practice or business entity. Once in widespread use, their numbers have been significantly diminished by the introduction of TR 2006/2.

    Advantages

              Asset protection

              Income tax flexibility

              Wealth accumulation

              Free up working capital

              Service fee of up to 45%of practice fees

              Low risk of tax audit

              Clear benefits to the practice

              Commercially based

              Calculated correctly

              Arrangement documented Disadvantages

              Fail an ATO audit

    o   Arrangement not commercially based

    o   Not clearly a separate business

    o   Inadequate documentation

              Costs outweigh benefits

              Not easily understood

              No specific obligations:

    o   Must keep adequate records to explain transactions

              Extent to which records are kept:-

    o   Significance, complexity & materiality of transactions

    o   Size of the business

    KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Superannuation Fund

    A superannuation fund is simply a form of trust designed to provide retirement or death benefits for its members, with those members being the beneficiaries. Provided the trust deed and the operation of the superannuation fund comply with the SIS Act and Regulations, the trustee operating the Fund, and the members, may obtain tax concessions.All superannuation funds in Australia operate as trusts. The deed establishes the basis of calculating each member’s entitlement. The trustee will usually retain discretion concerning such matters as the fund’s investments and the selection of a death benefit beneficiary. Many business owners use SMSF as an integral part of their wealth creation and asset protection strategies.While SMSFs are attractive because of the level of control they provide to family members, it has to be remembered that they are still subject to a whole range of legislative requirements. Thus while SMSFs may look superficially like a discretionary trust, they are actually quite different and trustees need to be aware of their special responsibilities.Advantages

  • The fund only pays 15 per cent tax on the taxable income of the fund and the tax payable is reduced by imputation credits on dividends received by the fund. Capital gains of complying funds are subject to a 33 1/3% discount where the assets have been held for at least 12 months meaning that the tax applicable is effectively 10%.The trustees (who are also the members) control the investment decisions and asset mix, and have the flexibility to change investments when they consider that this is appropriate (that is, they are not locked into a fund manager’s mandate or poor returns).It encourages self-sufficiency at retirement and interest in one’s own financial affairs.It can be used to accumulate superannuation assets and can then be used to pay a superannuation-funded pension to the members when they retire. This offers increased financial security later in life. (Some members may also qualify for part or full government age pensions.)Costs of compliance and administration are often less than the fees charged by a public superannuation fund (although this will vary with the size of the investment, cost of advice, number of transactions and amounts and types of investments held).The members don’t get charged an entry fee when they contribute to the fund or an exit fee if they withdraw their benefits.People who are running a business can own their business premises in a self managed superannuation fund and rent to themselves or to a related party. The fund may also own residential investment property so long as it buys it from or leases it to an unrelated party. (Note that residential property be purchased or acquired from a member or related party of the fund.)It can be financially rewarding and fun once you know what you are doing. For example, superannuation fund investments can be selected and where appropriate integrated with the members’ personal investments (within limits) to get overall diversification.A properly structured self managed superannuation fund safeguards your assets in the event your superannuation outlives you, so your family and other members benefit – not a large life company!The people who do take the time to understand the rules and the constraints and stay within them rarely encounter problems. Also there are specialist firms that can guide you every step of the way from the setup to conversion to pension to paying out benefits when a member dies, and many can also do the administration for you if required.
  • Disadvantages

  • You will need to pay ongoing attention to investments, the economy and changes in legislation.The potentially higher costs of self managed superannuation funds with low capital may make the fund uneconomic when compared with the net return from an account in a larger superannuation fund.The members are also the trustees, which means they have additional responsibilities and the requirement to comply with legal requirements.The fund may have a lower investment performance if the trustees’ and members’ management is not closely controlled or if there is too much reliance on commercial advisers, as distinct from the professional advisers not affected by commission income.If the fund ever becomes non-complying, for example, if there is a serious breach of investment rules with related parties, it can lose its tax concessions.Need for continuing attention.
  •  KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Testamentary Trust

    As the name implies, these are trusts which only take effect upon the death of the testator.

    Normally, the terms of the trust are set out in the testator’s will and are often established where the testator wishes to provide for their children who have yet to reach their adulthood or are handicapped.Advantages

  • Testamentary Trusts are an important way of ensuring your children obtain the maximum potential from your inheritance to them.Properly drafted Wills can protect children from relationship breakdowns.You can protect your beneficiaries from business and investment risk.You can ensure children in their minority are not exposed to penalty tax rates.You can properly deal with life insurance payouts and superannuation.You can prevent possible capital gains on sale of your primary residence, and minimize other tax liability.You can precisely provide for incapacitated beneficiaries and those otherwise in crisis.
  • Disadvantages

  • generally speaking, an estate must have income-generating assets valued in excess of $500,000 for the taxation benefits to be significant. In determining the size of an estate the following issues should be considered: jointly owned assets do not form part of the Testator’s estate as they will pass by survivorship and not through the Testator’s Will;where the Testator has nominated a beneficiary under a life insurance policy, the proceeds will be paid to that person directly and will not form part of the Testator’s estate;death benefits from a superannuation fund do not automatically form part of the member’s estate. The Trustee of the superannuation fund generally has a discretion whether to pay the benefits to the member’s estate or directly to the member’s dependents subject to any binding death nomination made by the member;assets that are already held in a lifetime discretionary trust do not form part of the Testator’s estate.
  • the cost of establishing a Testamentary Trust is comparable with the combined cost of establishing a lifetime discretionary trust and a Will but the more complex the trust structure, the higher the initial set-up fees (which are not tax deductible). in addition to the initial set-up fees there will be ongoing, annual accounting together with other professional (e.g. financial advice) and compliance fees.if the Trustee distributes income to Beneficiaries in order to arrange the most tax effective scenario, some Beneficiaries may inherit more than the Testator would have wished simply because they are in a low tax bracket.complexity and formality of the structure can be a headache. For example, minutes are required for each Trustee resolution. If the Trustee is not the primary Beneficiary, a Beneficiary must ask a Trustee, if e.g. they would like a large distribution for a major purchase or almost any kind of unusual event, because they are not controlling the underlying assets.since changes to the Social Security rules in 2002 the whole of the assets of a trust can be counted as belonging to a Beneficiary on a pension or other social security means tested benefits.subject to the terms of the trust, retaining the main residence in a Testamentary Trust may result in a loss of the CGT exemption. Land Tax consequences would also need to be considered.as with all discretionary structures, much will depend on the decisions taken by the person in ultimate control, in this case the Trustee of the Testamentary Trust. This can be off-putting for certain Testators who prefer certainty over flexibility.KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Other Trust Structures

    There are many other types of Trust Structures which may be less commonly used. These include:          Pedigree Trusts          Blind Trusts          Class Trusts          Implied Trusts          Protective Trusts          Special Disability Trusts          Bare Trusts

    KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Who We Are at KSGH SECURITY

    Business Advice/Mentor 

    We offer business advice and mentor services. Grant Hudson is classed as one of the best business advisors and mentors that money can buy. His knowledge is so expansive and diversified.He also offers the most effective discretionary trusts available to people wanting to protect their assets. Including but not limited to real tangible property, commercial, private, residential, vehicle, crypto currencies, stocks, bonds, precious metals, or any other assets or commodities to which 100% equity is owned. Areas of expertise Include:-           Advertising / Marketing / Sales          Stockmarket Trading Property Investment          Property Development          Yacht Development Solar Electric Propulsion          Asset Protection Ability to operate privately          Mentoring          Business Advice          Charitable Institutions          Income protection          Document copyrighted          Contract Common/ UCC Law 

    About Business Advice and Mentoring  

    How can I find out more about getting Business Advice, Mentoring or Advice for this Trust? 

    Please use the Contact Us button to email your questions. You can also join our email list, below, for updates and information. BUSINESS ADVICE KSGH SECURITY Title: “Grant Hudson: A Journey from Homeless to Multimillionaire Mentor and Innovator” 

    Introduction:

     In a world that often glamorizes overnight success stories, Grant Hudson’s journey is a testament to the power of resilience, strategic planning, and a relentless pursuit of financial freedom. From sleeping on the beach at the age of 17 to becoming a self-made multimillionaire by 25, Grant’s story is nothing short of inspiring. 

    Early Struggles and Advertising Triumph:

     Grant’s entrepreneurial spirit ignited at a young age when he found himself sleeping on the beach. Determined to change his circumstances, he established his own advertising agency. By the age of 25, he had achieved the remarkable feat of making his first million dollars within 1 year, setting the stage for the extraordinary success that would follow.

     Diversifying Investments: 

    Property Mogul and Stock Market Guru: Grant’s journey didn’t stop at advertising. With an innate understanding of the real estate market, he ventured into property development, creating a portfolio worth over 60 million dollars. Simultaneously, his prowess in the stock market, honed over 28 years, led to consistent success, establishing him as a seasoned investor. Balancing Business and Spirituality: A Unique Collaboration with the Dalai Lama: Grant’s life isn’t just about financial success. He believes in achieving a harmonious balance between business and spirituality. His collaboration with the Dalai Lama resulted in a book that explores the delicate art of balancing material prosperity with a deeper sense of purpose. 

     Philanthropy and Leadership: 

    CEO and Director of Charities: Grant’s success extends beyond personal gain. For 17 years, he served as the CEO and director of charities dedicated to supporting children with life-threatening illnesses and fostering the growth of indigenous businesses. His commitment to philanthropy showcases a holistic approach to success that goes beyond monetary achievements. 

    Innovating for a Sustainable Future: 

    Solar Electric Supercar and Yacht: Grant’s passion for innovation is evident in his recent projects, including Australia’s first solar electric super yacht valued at 4 million dollars. As a testament to his commitment to sustainable technology, he is also pioneering the world’s first solar electric supercar. These projects reflect his dedication to a future where success coexists with environmental responsibility. 

    Mastering Asset Protection: 

    Creating the Safest Discretionary Trust: With over 27 years of experience in asset protection, Grant has developed what he believes to be the safest discretionary trust owned by his company KSGH SECURITY in Australia. His expertise in this area has allowed him to guide others on the path to securing their financial future and protecting their hard-earned assets. Mentoring the Wealthy: Grant’s $440-per-Hour Wisdom: Grant Hudson’s wealth of experience and knowledge is not kept to himself. He now dedicates his time to mentoring wealthy individuals, helping them navigate the complexities of advertising, marketing, property development, stock market trading, business structure and restructuring, strategic planning, common/UCC law and more.His guidance comes at a premium—$440 per hour for business advice through KSGH SECURITY—but for those seeking clarity and stability in their financial future, it’s a small price to pay for the insights of a true master. 

    Conclusion: 

    Grant Hudson’s story is a remarkable journey from humble beginnings to financial mastery and innovative leadership. His commitment to balance, sustainability, and philanthropy sets him apart as not just a multimillionaire but a visionary who uses his success to make a positive impact on the world. As he continues to shape the future with groundbreaking projects, one can only anticipate the ongoing influence of Grant Hudson in the realms of business, innovation, and philanthropy.

    If you would like to find out more about our full range legal accounting services, please click visit our company website

    KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Our Services

    Trust structures can be quite complex and if not set-up correctly can end up being more costly and not provide you the benefits that you were initially seeking.There are over 20 different types of trusts and as Accountants, Lawyers and Financial Planners, we can first advise whether a trust structure is the correct structure for your specific circumstances. Following that, if it is decided that a trust is the best entity for your needs we then advise which specific structure will help you achieve the desired outcome. Upon advising you of the appropriate structure we are then able to attend to the process of its formation which includes:

  • Preparing the trust deedHaving the deed executed and stampedSupport opening of the bank accountProviding a full explanation of the workings of the trust.Business advice Mentoring all in the one place
  • We work through the process with you and take the time to explain the laws and regulations, as well as the benefits in simple, clear terms without the legal and accounting wording as we are not lawyers or accountants but we do have access to them.

    KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

    Pros and cons of discretionary trusts at a glance:

    1. Discretionary trusts allow for the accumulation of assets for beneficiaries They give flexibility over capital and income distributionDiscretionary trusts also offer the potential for simpler reporting They enable discounts on capital gains taxesHowever, beneficiaries lack equitable or proprietary legal interest in property You must also pay a family trust distribution tax Discretionary trusts are also subject to regulatory burdens

    With a discretionary trust, a trustee or trustees hold the property for the beneficiaries, and an appointor has the ability to hire and fire the trustee. Therefore, the appointor has ultimate control over the wealth in the trust.

    Many Australian businesses are carried on in discretionary trusts. This is especially true of family businesses.

    The beneficiaries of discretionary trusts are usually immediate and extended family members, other family companies and charities. They don’t all have to be included at the establishment of the trust; they can be added later as needed. In a discretionary trust, beneficiaries have no interest in the trust property unless the trustee exercises its discretion to distribute to them. The trustees can decide to distribute income or capital among the beneficiaries as they see fit. They’re not held to predetermined arrangements or agreements. This offers a great deal of flexibility, but might seem too nebulous for some stakeholders.What works well for one business may not be the best choice for another business, which is why it’s important to weigh the pros and cons of a discretionary trust structure for your unique situation.  Pros of Discretionary TrustsDiscretionary trusts can be attractive options for several reasons, and they suit some businesses and organisations better than they suit others. The following are several pros of discretionary trusts.Allowance for Accumulation of Assets for BeneficiariesUnlike some other business structures, discretionary trusts allow for the accumulation of assets for beneficiaries. These assets, along with the capital of the trust, can be distributed to the beneficiaries without incurring significant taxation consequences.Flexibility Over Capital and Income DistributionJust as discretionary trusts offer ways to accumulate assets for beneficiaries, they also have an element of flexibility over how capital and income are distributed. The trustee or trustees of the trust could use their discretion to change the allocation of funds to certain beneficiaries without having to make any major changes. The Potential for Simpler ReportingBecause discretionary trusts restrict and specify the trust beneficiaries, you may be able to simplify some of your reporting, such as the claiming of tax losses, debt deductions and franking credits. This is because in many cases, beneficiaries of discretionary trusts cannot take advantage of franking credits attached to share dividends received by the trust and passed to beneficiaries.Discount on Capital GainsAnother tax-related benefit to operating your company as a discretionary trust is that the trust is entitled to a discount on capital gains made on the disposal of assets held by the trust for longer than 12 months. People who hold shares are also eligible for this capital gains discount, but the discount does not apply to companies that hold shares.  Cons of Discretionary TrustsUnfortunately, there are also several cons to discretionary trusts. Some of these cons weigh heavier for some businesses than for others, depending on a number of factors such as size, income, losses, and assets. Beneficiaries Lack Equitable or Proprietary Legal Interest in PropertyThe flexibility that can be so helpful in some cases can also be a liability in other cases. Since the trustee or trustees can use their discretion to change allocations, beneficiaries don’t have certain legal interests in the trust property. Therefore, beneficiaries can’t necessarily count on receiving their “share” of the assets because allocations could be changed on a whim. And in fact, a recent court case shows that even the trustees’ decisions can be overturned. Family Trust Distribution TaxFamily trust distribution tax applies when a distribution is made outside of the “family group.” The “family group” is designated by making the election, so it’s highly important for trustees to make the election and choose the appropriate “test individual” for the family group. Keep in mind that a reasonable salary, wage or benefit such as superannuation is not considered to be a distribution. Regulatory BurdensRunning a discretionary trust adds compliance obligations, and these additional obligations can be distractions for business owners. If you’re a business owner who likes to pour all of your efforts into growing your organisation, you may become frustrated with the compliance responsibilities associated with a discretionary trust. Weighing the Pros and Cons of Discretionary TrustsFor businesses that are operated by two or more independent people (not members of the same family), discretionary trusts are less common and less appropriate. This is because independent parties generally want to know exactly who will receive what in order to make wise investment and business decisions. If flexibility is important to you, a discretionary trust may be the best option. It provides asset protection in that it can prevent a beneficiary’s creditors from accessing key assets. Therefore, if a business goes bankrupt, creditors won’t be able to touch any property held in the discretionary trust. Also, the trustees maintain complete control over income and capital distribution. If the net income is distributed by the end of each financial year, taxes may be minimised.Depending on the complexity of your discretionary trust, the establishment and administrative costs could be more expensive than some other business structures. It would be wise to seek professional advice regarding the costs of a discretionary trust that suits your business. 

    KSGH SECURITY DISCRETIONARY TRUST.THE LEADER IN SAFE AND SECURE TRUSTS

    KSGH SECURITY CONTACT US: If you would like more information on our discretionary trust structures and want to learn more to protect your assets, please click here to submit an online enquiry form or call us on 0477 177 712 or INT: +61 477 177 712 to arrange an appointment.

     Contact KSGH SECURITY for Trusted and Business advice.