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Law Notes Trusts Notes

Business Trusts Notes

Updated Business Trusts Notes

Trusts Notes

Trusts

Approximately 168 pages

These notes deal with the law in relation to trusts, incorporating testamentary and inter vivos trusts, as well as other components including business trusts, charitable trusts and superannuation....

The following is a more accessible plain text extract of the PDF sample above, taken from our Trusts Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

BUSINESS TRUSTS TRUSTS | PAGE 45 BUSINESS TRUSTS Discretionary Trusts: * Type of express trust * Criterion certainty test * Interest of beneficiaries is that of a mere expectancy until any benefit is attributed to them by the trustee * Discretionary trusts allow: o High tax--payer to distribute pre--tax income among family members so as to minimize the overall tax burden o Good way to shift benefits away from bankrupt individuals to other beneficiaries who will not be forced to surrender the benefit to creditors o Trustee is relatively powerful SS? Still bound by fiduciary obligations o Trust property is given to the trustee (usually a nominee company) o Trust property is usually a nominal sum with larger sums added later to diminish stamp duty (where applicable) o Trustee has a very wide discretion to distribute the income so as to achieve tax minimisation SS? Beneficiaries are usually the husband, wife and children, though others may be included o The trust is to continue for a specified period after which the trustee will divide the capital o There is usually a power to advance capital to the beneficiaries o The husband and/or wife are usually given powers as appointers in the trust instrument to remove or appoint trustees TRUSTS | PAGE 46

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