BUSINESS TRUSTS

Trusts are often used in business via a corporate trustee where a company takes on administration of a trust and becomes the corporate trustee and the trust possesses all the assets.

Trusts are used by many business owners to minimise personal liability and also to ensure their personal assets are not at risk.

We advise clients to also be aware that the directors of corporate trustees could still be made personally liable through s.197 of the Corporations Act 2001 where the company is not entitled to be fully indemnified out of the assets of the trust solely because of the corporate trustee;

Another reason for use of a corporate trustee is that companies do not have finite lives as would an individual stakeholder.  If an individual dies or leaves then different directors can be appointed as directors of the corporate trustee.  This can avoid all the trust assets from having to necessarily be transferred upon the individual’s departure or death.

Contact our professional team for a confidential discussion about expanding your business into Australia on 02 9415 1118.