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some more trust questions
hi….am i along the right lines here regarding structure
open a private unregistered trust > convey assets to said trust (i would be trustee so having control of assets and reponsibilty of trust) > open private foundation (of which i would be an administrator) which is a beneficiery of trust.
if trust’s assets grow, it can make donations to foundation reducing tax liability.
so questions are…..can one be trustee of trust and an administrator of foundation that is beneficiery to trust?
does the foundation have to be a beneficiery or can it just operate independently?
if trustee takes fees for running the trust, are these taxable? If so, these would be kept to a minimum. are there trustee expenses that can be written off against any fees? Or can trustee volunteer their time and be compensated from the trust for their productivity of labour?
regarding the foundation, what sort of form should it take? i was thinking about making it services to community…where i help people with jobs they are unable to perform around their houses..handyman sort of stuff ( i am tradie). these people would then make donations should they choose to the foundation, and the foundation could accept other donations i.e. from trust to keep it going. administrators could take their fees…or be compensated for voluteering their time.
am i along right lines? esp with structuring?…..hope you can understand some of my questions…sorry its a bit loose. I have read lots of material that morag has sent and am just wrapping my head around it….suppose its a case of just going for it and learning along the way…thanks in advance
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2 Replies
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It sounds like you are on the right track. Just remember the tax office has no jurisdiction over an unregistered trust unless you invite them in by using taxable terms such as income, employee etc. If they approach you to ask questions just remember you are the creditor and you are the one asking questions. As soon as you answer even one question you have given them jurisdiction so don’t do it unless you want them to get a foot in the door. As far as Foundations are concerned the man who supplies them will be able to answer all of your questions once you have a foundation. Just keep studying, the more webinars you watch the more you will get your head around the correct way to act as a creditor and how to operate in the private safely and in the public safely.
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Thanks for replyingđź‘Ť appreciate it!