What is a Trust?

A trust is a legal arrangement in which one party (the trustee) holds and manages assets on behalf of another party (the beneficiary). Here are the key components and features of a trust:

1. Trustee: The individual or entity responsible for managing the trust assets and ensuring they are used according to the terms of the trust agreement.

2. Beneficiary: The person or group who benefits from the trust. They receive income or assets from the trust as specified in the trust agreement.

3. Trust Document: A legal document that outlines the terms of the trust, including how assets should be managed and distributed.

4. Types of Trusts:

   • Living Trusts: Established during a person's lifetime to manage their assets.

   • Testamentary Trusts: Created through a will and take effect upon the death of the person.

   • Revocable Trusts: Can be changed or revoked by the grantor during their lifetime.

   • Irrevocable Trusts: Cannot be changed once established, providing certain tax benefits and asset protection.

5. Purpose: Trusts can serve various purposes, such as estate planning, asset protection, tax benefits, or ensuring that assets are managed for minor children or individuals who may not be able to manage their finances.

Trusts are commonly used in financial and estate planning to manage wealth and ensure that assets are distributed according to the grantor's wishes.

At YS Accounting, we specialize in assisting businesses with Trust Setup, ensuring an accurate and streamlined process. Please feel free to schedule an appointment with us on our website at www.taxbne.com.au/. We look forward to providing you with the support you need.