Mark Mathews

You would firstneed to establish the trust by deed, preferably with a corporate trustee, say ABC Pty Ltd. Then ABC Pty Ltd astrustee for the A FamilyTrust (for example) would be the entity that wouldobtain aTrust TFN , apply for an ABN and register for GST. Having another company as a beneficiary of the trust can be beneficial in certain circumstances, but you have to then think about how the profits flow out of the company beneficiary. As with all business structures that are being established, you have to think carefully about asset protection issues - which entity is going to hold business assets and which entity is going to run the business. And of course, what are the likely tax implications. It's a commonmisconception to talk of a "business" being an asset of a trust. A business consists of a series of assets that are put to use in some enterprise or activity. I would recommend you seek appropriate professional advice.

A trust is an arrangement where one person or organisation (the trustee) holds assets (the trust property) on behalf of another person (the beneficiary). Trusts can be established for a number of reasons such as tax planning, providing for children or charitable causes.

The requirements for setting up a trust depend on the type of trust you want to establish and its purpose. To create any trust in Queensland, you will need to:

• select a trustee who will agree to be responsible for administering the trust in accordance with the terms of the trust deed;
• have a lawyer prepare a trust deed (a legal document that sets out the rules for establishing and operating the trust) that is to be signed by the trustee;
• give the assets (even if only a nominal amount) to the trustee;
• pay stamp duty to the Office of State Revenue if a trust is created over ‘dutiable property’, as that term is defined in the Duties Act 2001 (Qld); and
• apply for an ABN and TFN for the trust online via the Australian Business Register or through a lawyer or accountant.

You should also be aware of additional legal requirements that apply to particular types of trusts. For example: a trust used to run a business must be registered for GST if annual turnover is $75,000 or more; a trust used to run a self-managed super fund must ensure it complies with the relevant superannuation and taxation laws that apply to it; and charitable trusts are subject to special laws and may be eligible for tax exemptions.

You should speak to a lawyer if you want to set up a trust in Queensland. By pressing the "Take Action" button - which opens late July - LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services.