Because of the complex regulatory and compliance frameworks governing trusts in Australia engaging a lawyer early in the process is highly recommended. A lawyer will help you understand how your specific business and family estate planning needs can be met through establishing a trust and whether it is the most appropriate option for your long term financial goals.

Engaging a lawyer to assist you in establishing your trust can:

• ensure that you are adequately informed about the relevant advantages and disadvantages of each available business option such as a company, trust, partnership, sole trader or joint venture;
• help you to understand how your choice of a trust structure will help or hinder your long term financial goals;
• ensure your choice of trust structure is the right one for your type of business;
• ensure that the trust deed is flexible enough to accommodate your changing business and family estate planning needs into the future;
• advise on which type of trustee can provide the best asset protection for the business and for individual family members;
• reduce unnecessary administrative and compliance costs;
• evaluate your different income, CGT, GST, land and other tax liabilities depending on:
  • the type of trust you choose;
  • the main functions of the trust;
  • the range of beneficiaries; and
  • the type of assets held by the trust;
• provide guidance on the different professional and industry requirements specific to your business type;
• assist trustees to manage their ongoing responsibilities such as the lodgement of tax returns and ensuring you adhere to the strict duties associated with the role of trusteeship;
• plan for the winding up of a family trust or the transition of the trust into a different business structure if your needs change; and
• help you resolve any disputes that arise against beneficiaries, unit holders or other investors.

Seeking legal advice before you establish your business can help you avoid making mistakes. Having someone guide you through the process one step at a time can also save you substantial time and money.