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Trust Business Structure

What is a trust business structure? A trust business structure is unique in the way that it doesn’t have an owner in the traditional sense. The trust has a trustee that manages the business assets for the benefit of others. These others are called beneficiaries, and benefit directly from the trust.

The benefits of a trust business structure include:

  • Income can be distributed at the trustees’ discretion
  • More privacy than a traditional company
  • Greater protection from creditors

While a trust can be beneficial for beneficiaries, it can be expensive and complex to establish. Dissolution or altering of the trust can also be difficult. That’s why it’s important to work with a tax accountant who understands trusts inside and out. If you’re thinking about a trust structure, Clear Tax can help.


Income is distributed flexibly through the trust – at the discretion of the trustee. Tax planning also offers flexibility to accountants working with trusts, allowing income splitting where needed for beneficiaries.

Asset protection

Beneficiaries are generally not liable for the debts of the trust, and are therefore protected. Personal assets cannot be sought by creditors in the event that the trust defaults on loans or other debts.

Tax benefits

Trusts are more private than companies. Beneficiaries also only pay tax on the income they receive from the trust. This income is taxed at their own personal marginal tax rate, leading to lower taxes.

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Business Plans For Trust Structures

Restructuring from a company or partnership to a trust requires some forethought and planning. Clear Tax can help you to organise, set up, and systemise this transition to help you get the most out of your position as a beneficiary.

Clear Tax’s business structure experts work with entities looking to form trusts to help them pay less tax. We can also help you ensure that all of your legal and tax obligations are met through the transition to becoming a trust, and beyond.

We want to help our clients succeed, but not at the cost of undue risk. We always operate ethically, giving you sound advice that will not jeopardise you or your trust. It’s part of our commitment to our clients.

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What Our Clients Say About Our Melbourne Trust Restructure Services

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I have worked with Clear Tax Accountants in Richmond Melbourne for about one year. They have managed my returns, my Jobkeeper, my grants and all they have done very professionally and are a wonderful friendly group of friends. I recommend them if you’re considering an accounting firm.
Great job to all of your Clear Tax teams. As the name states its been a very clear advice and efficient. Always helpful to develop our business via free seminars. Great job guys.
I have been dealing with Yuvraj for number of years. His personal, professional and prompt service is second to none, one of the many reasons i have referred her to my clients and friends. will continue to do so. Without a doubt, 5 star all the way.
Their services are dependable, quick, and reasonably priced. They keep me informed about new tax legisaltion that may affect my position and will assist me reduce the amount of tax I owe or maximise my refund. I’m certain that my taxes are being handled in the most efficient manner possible. Thank you very much!
Highly recommended clear tax accountant. Ash and Manish and the team are providing the best services in Melbourne, extremely helpful, knowledgeable and professional. They are very responsive and answer all your queries. Always happy with their work so thank you very much.
Ash and Yuvraj are a great team. They genuinely care and help people. They are professional and friendly. No matter how busy they are, they will always get back to you. I have called Ash few times and he has always called back irrespective of the time, always chirpy even over the phone. I would highly recommend their team.
Ash and the team at Clear Tax have been absolutely spot-on for me and my business. Thorough, informed, approachable and, above-all, affordable, their company provides an incredibly refreshing and forward-thinking alternative to the more ‘old-school’ accountancy firms. Thank you for helping me in an area of business I do not love!
We are delighted with the service Ash and his team at Clear Tax Accountants has afforded us since we joined them. They are very forward thinking utilising new software apps and technology. Most importantly for us, they are always accessible to help and answer our queries, as well as taking the time to get to know more about our business, Government Grants and how it works – a rare thing!
Excellent Service & help with all aspects of my accounts. Working as a micro-business I have little time to spend on accounts and the team at Clear Tax Accountants have looked after me brilliantly from the very beginning. I feel I am in safe hands and they answer queries in a very straightforward manner so I understand everything in order to decide what to do best for my business. Delighted with Ash and Yuvraj. Thank you!
We are delighted with the service Ash and his team at Clear Tax Accountants has afforded us since we joined them. They are very forward thinking utilising new software apps and technology. Most importantly for us, they are always accessible to help and answer our queries, as well as taking the time to get to know more about our business, Government Grants and how it works – a rare thing!
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Example Of A Trust Business Structure

Trusts are formed when a company wants to protect beneficiaries. For example, Carlos owns a large, independently-owned garden centre, having inherited the business from his mother and father upon their retirement. Carlos’ own adult children all work for the garden centre.

The business has grown rapidly in the last 10 years under Carlos’ management. He now wants to involve his children more in its operation, while he takes a backseat. He seeks to set up a family trust for his children.

This trust is managed by a trustee, which holds all of the benefits for his children. They receive income directly from the trustee, as opposed to being paid by the business. His children’s personal assets are also protected from any liability.

While it works well, this trust structure was expensive to set up and operate under the formal trust deed. The trustee undertakes formal administrative tasks each year, and it is very difficult to dissolve or make changes to the trust in the future.

Frequently Asked Questions

About Partnerships
Below are answers to some of the most common partnership questions our accountants get asked.
  • How can I change my business structure from a company to a trust?

    Changing structures to a trust is incredibly complex and we wouldn’t recommend it without some serious consideration. You need to decide whether you are switching to a unit trust or family trust, amongst other things. To learn more about trust business structures, contact Clear Tax.

  • What are the advantages and disadvantages of a trust business structure?

    The advantages of a trust structure are that income is disseminated to trustees, upon which they only pay their marginal tax rate. The trust is more private than a company, and most decisions are at the discretion of the trustee.

    The disadvantages of a trust are that it is expensive and complex to operate, and difficult to dissolve. It can also be harder to borrow funds. Losses cannot be distributed, only profits, and these profits must be distributed each financial year or they will be taxed.


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