1. Discretionary Trusts. A discretionary trust is the most common type of trust in Australia. In the case of a discretionary trust, the trustee is given complete discretion as to how the trust income is distributed to the beneficiaries. Generally, the trustee can change how the trust income is distributed each year.. A family trust is a type of trust generally established by someone during their lifetime for the benefit of their 'family group'. It is a discretionary trust and can be used to hold assets, run a family business, manage certain investments and support beneficiaries. This type of trust structure is typically established for tax effectiveness.
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In Australia, a private trust can operate for up to 80 years. The duration of the trust is generally set by the trust deed, which can specify a shorter term. The term can be based on the happening of a specific event, e.g. the date that someone dies or reaches a specific age. The end date of a trust is usually called the 'vesting.. A trust is an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries. Trusts, trustees and beneficiaries An overview of the role of trusts, trustees and beneficiaries.
