Discretionary Trust: Deed of Settlement

Discretionary trusts are one of the most flexible business and investment structures in Australia – they have the added benefit of a number of commercial and tax advantages. This comprehensive document is all you need to form your discretionary trust without the assistance of a lawyer.

This template “Deed of Settlement of a Discretionary Trust” allows a settler to provide finance (directly or indirectly) of varying degrees to benefit the maintenance and education of any one or more of the beneficiaries. Stamp Duty on Establishment of Discretionary Trust varies from state to state. It starts at as little as $20 in some areas and yet from $200 in other territories. Visit the State Revenue Office in your state to find out applicable stamp duty rates.

Application and features

Lasts for a maximum of 80 years (the same as any other Discretionary Trust) Settler may not be a beneficiary of the trust Suitable for use in all Australian territories and states;

Drawn in plain English;
Flexible – alternative paragraphs to suit peculiar needs;
Invaluable user notes to guide you through to successful execution;
Very comprehensive, covering all required legal and tax provisions;
Suitable for establishment of any size Trust;

Contents

Objects and Purpose of Trust;
Beneficiaries;
Income Distribution;
Manner of payment to a beneficiary;
Distribution of capital;
Appointment and removal of the Trustee;
Income and Capital;
Powers and remuneration of the Trustee;
Exercise of Powers and Discretions by the Trustee;
Financial Accounts, records and audit;
Investment of Trust Funds;
Winding up of Trust;
Resettlement;

A discretionary trust is one of the most common trust structures in use because of its flexibility and because it can be adpated to a wide variety of applications and is often and extremely tax effective method of protecting assets and investment income.

Discretionary Trust: Deed of Settlement