Create the trust and trust deed

A trust is an arrangement where a person or company (the trustee) holds assets (trust property) in trust for the benefit of others (the beneficiaries). A super fund is a special type of trust, set up and maintained for the sole purpose of providing retirement benefits to its members (the beneficiaries).

To create a trust, you need:

  • trustees
  • assets (an initial nominal consideration to give legal effect to the trust can be used – for example, $10 attached to the trust deed)
  • identifiable beneficiaries
  • the intention to create a trust.

A trust deed is a legal document that sets out the rules for establishing and operating your fund. It includes such things as the fund’s objectives, who can be a member and whether benefits can be paid as a lump sum or income stream. The trust deed and super laws together form the fund’s governing rules.

The trust deed must be:

  • prepared by someone qualified to do so – it’s a legal document
  • signed and dated by all trustees
  • properly executed according to state or territory laws
  • regularly reviewed, and updated as necessary.

Next step:
Appoint your trustees

*reprint from the Australian Taxation Office

Create and Protect Financial Planning
Create and Protect Financial Planning group helps you set realistic lifestyle and financial goals and provide you with advice on strategies to achieve those goals. This can include managing debt, budgeting, investments, superannuation, retirement planning, risk management and estate planning.

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