In summary, a Trust is created to enable the Trustee (the person setting up the Trust) to control what happens to certain funds or property in the future. For example, this is sometimes appropriate where a Beneficiary remarries and property should be placed beyond the legal reach of any subsequent spouse. A Trust may also be appropriate to ensure the long-term financial wellbeing of small children into adulthood should a Beneficiary die prematurely or become otherwise incapacitated. A Trust is often established simply as part of wealth management including for taxation purposes and specialist advice should always be sought.

There are benefits in having a Trust in the event of insolvency, as the property in the Trust may be beyond the legal reach of creditors (however this will depend on certain details surrounding the settlement of the Trust including in particular the date when the Trust was established and the purpose for which it was set up). This is a highly specialised area in the law and LAWLIVE® users should always obtain appropriate legal advice.

Finally, since the introduction of Commonwealth legislation in 1993 which imposed the compulsory superannuation levy, most Australians are now members of a Superannuation Trust Fund (either industry, retail or self-managed). Members of a Super Trust Fund should receive full details including membership entitlements from the Fund Manager or Fund Trustee (if the Trustee is also the Manager).

- Discretionary/Family Trust (Trusts)

A discretionary (family) trust is a type of trust where the trustee can control the allocation of income and capital to beneficiaries. This deed establishes a Discretionary (family) Trust nominating a family member/s as beneficiaries of the discretionary trust. This allows the family to direct the use of and benefit from the assets without ownership of them. For example, a discretionary trust can be established to ensure the long-term financial wellbeing of small children into adulthood should their parents die prematurely or become otherwise incapacitated. Furthermore, they may provide protection of family assets in the event of bankruptcy, family breakdown or challenges to a will. Discretionary Trust deeds must comply with relevant State and Territory legislation.

There are two templates, one for where a company is a trustee and the other for where the trustee is an individual.

- Unit Trusts (Trusts)

Unit Trusts are a form of trust recognised by law whereby a trustee (an individual or a company) will own certain assets, e.g. property or a business, it will run that business or engage others to conduct the business (managers), and it will hold its ownership of that property or business beneficially for the Unit Holders according to the number of Units that they hold.

This unit unit trust should be used where there are no more than 20 investors to collectively share through specific percentages (the number of Units issued) in the benefits of an asset by having it acquired by a trustee and held for them in those percentages. It is commonplace for the trustee of a unit trust to be a company (referred to as a corporate trustee) because this is more tax effective.

- Loans To & From Trusts (Trusts)

Unsecured loans are loans that do not require the borrower to provide the lender with collateral, usually because of the creditworthiness of the borrower. Because the Unsecured loan is not secured against the borrower's assets, such as property, it is important to draft an agreement that clearly sets out the terms on which money has been lent.

These templates are specifically for unsecured loan agreements for a loan to or from a trust. The Unsecured loan may be existing or new (if the Unsecured loan is to be made simultaneously with the signing of the agreement).

- Corporate Minutes (Trusts)

These documents include minutes to appoint a company (including a Sole Director company) as trustee of a trust. The company is referred to as a corporate trustee. Where the trustee of a trust is a company, there are also documents that are the minutes for the company in its capacity as trustee to enter into a specified transaction.

- Registers (Trusts)

These are pro forma registers that record details of the relevant trust and associated matters.

- Checklists (Trusts)

Checklists are highly useful to make sure you have covered critical aspects of building the right document for your trust's needs.