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ARTICLE · 24 APRIL 2021

Trusts in operation – benefits and burdens

Bartier Perry Solicitors
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Trusts have well-documented benefits, but trustees can be burdened by their complex legal and fiduciary obligations.

AustraliaCorporate/Commercial Law
Gerard Basha
Gerard Basha
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Trusts have well documented benefits including asset protection and tax minimisation opportunities. However, the relationships created by those trusts result in trustees being burdened by their complex legal and fiduciary obligations to beneficiaries and by their obligations to third parties. This bulletin briefly examines some statistics produced by the Society of Trust and Estate Practitioners (STEP) on the use of trusts and looks at some recent case law examples of the benefits and burdens of trusts.

Use of Trusts

Private family trusts are used today for lifetime wealth accumulation, tax benefits and asset protection. Testamentary trusts (Will trusts) are often used for post death asset protection and tax minimisation opportunities for surviving family members. Charitable trusts are utilised for long term philanthropy objectives. Commercial trusts are used by companies to support and protect businesses, employees and business owners. Superannuation trusts are

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