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  • Help with Using a private foundation with a private trust

    Posted by pmcmahon on February 21, 2023 at 10:29 am

    I have a Private Foundation (done by Peter Duff)

    It is supposed to work in harmony with a private trust.

    The foundation is what I run my business through; and I intend the trust to hold the property(res)

    My question is; where does the foundation fit into the trust?

    Is the foundation to be listed as a beneficiary? Or is it to be listed as a trustee.

    Also, I think The ALL CAPS NAME is to be a trustee; and the living man is to be a beneficiary. Is that correct?

    Also, how many trustees do I need in a private trust? And what kind of entities do they need to be?

    morag-janet-of-the-hill-family replied 9 months, 3 weeks ago 3 Members · 13 Replies
  • 13 Replies
  • morag-janet-of-the-hill-family

    Member
    February 21, 2023 at 10:48 am
  • morag-janet-of-the-hill-family

    Member
    February 21, 2023 at 10:52 am

    You need preferably two or more trustees and separate beneficiaries such as your children or even your pets can be beneficiaries. Trustees can also be beneficiaries but they must have beneficiaries outside of themselves as well to make it a legitimate Trust. A legitimate trust is held for the benefit of a third party.

    • pmcmahon

      Member
      February 21, 2023 at 11:30 am

      Thanks

      Regarding my private foundation, which I am currently running most of my business through. Do I make the foundation a beneficiary of a private trust? Do I make the foundation a trustee of the private trust? Do I keep the foundation seperate from the private trust?

      Kindly, Peter

      • morag-janet-of-the-hill-family

        Member
        February 21, 2023 at 12:46 pm
        • pmcmahon

          Member
          February 21, 2023 at 1:15 pm

          Thanks.

          When Mark and Peter Duff have said the private foundation and the private trust work in harmony together, I thought they meant that the two should be linked in some way. Is my thinking that they should be linked in some way incorrect?

          Is there a disadvantage in having the foundation as a beneficiary of the private trust?

          • morag-janet-of-the-hill-family

            Member
            February 21, 2023 at 1:36 pm

            I don’t think they mean linked I think they mean two separate entities that support one another by having different roles that interplay with one another. The more private and less the PTB knows about who own them etc the more versatile they become. If you link them it will be more easy for them to be seen to be from the same source and more easy to have them targeted at the same time.

            • pmcmahon

              Member
              February 21, 2023 at 3:50 pm

              Makes sense.

              Thanks.

              My next question is this:

              For many years until recently (before I created the private foundation), I have run my business through a registered discretionary family trust. I still am running some of my business through it (mostly just to pay off a income tax bill on a payment plan).

              Do you think it would be useful to have the registered family trust as one of the trustees of a private (unregistered) trust?

              I also, have a U.S. LLC company that exists only to be able to have insurance for selling products on Amazon(US). Due to how the world is atm, I have decided to discontinue selling on Amazon(US). The Amazon business is run by my registered family trust.

              Are there any advantages to having a U.S. LLC. as a trustee for a private (unregistered trust)?

        • damianx303

          Member
          May 8, 2023 at 3:49 pm

          Hi There.

          Question.

          When we make a donation or contribution out of our PUBLIC business into our Private Trusts/Foundations using affidavits and so on, is there any concern for us that the trust or foundations are not publicly recognized as DGR (deductible gift recipients).

          Will the ATO have issue with this as (one of their own – PUBLIC entities) performing an legitimate transaction to an unendorsed DGR (Private Trust/Foundation)??

          See website link.

          https://www.ato.gov.au/Non-profit/Getting-started/Getting-endorsed-for-tax-concessions-or-as-a-DGR/Is-my-organisation-eligible-for-DGR-endorsement-/DGR-categories/

          There are two types of deductible gift recipients (DGRs), those:

          Understanding what we do in the Private IS private.

          Its just about getting the fruits of our labour that are in the PUBLIC across most safely with NO risks.

          I’m a commercial builder so parts of what i have to do a absolutely PUBLIC!!! I can’t avoid this.

          Due to this, I’m of the opinion it might be safer for now, until confirmed, that invoicing (Non-gst/NAT3348) process from the trusts and foundations to the Corporate entity will be best.

          Your thoughts always greatly appreciated.

  • morag-janet-of-the-hill-family

    Member
    February 21, 2023 at 4:55 pm

    This is a bit above what I know and if you purchase a private Trust from Mark you will have a 1 hour interview with him included in the price where you can ask any questions of him that you wish and as he has extensive experience running his trusts and working with others he will be able to give you the information you are seeking.

  • pmcmahon

    Member
    February 21, 2023 at 5:01 pm

    Thanks

    • pmcmahon

      Member
      February 21, 2023 at 5:13 pm

      Can I purchase a one on one session with mark before buy the trust?

      I remember seeing it as an option somewhere on the website saying that if I then go ahead with purchasing the trust, the cost of the one on one session would be deducted from the trust cost.

      Is that still an option?

      How do I book the one on one?

      • morag-janet-of-the-hill-family

        Member
        February 21, 2023 at 5:35 pm

        The one on one is part of the purchase price, it’s all inclusive in the price. Purchasing the Trust is the only way anyone gets a one on one with Mark as he is a very busy man and no longer time for any one on ones apart from the Trust appointment he provides.