Tax Guide

Trust

Advice on business and asset holding structures and for individuals and entities who are considering such structures.

The use of Trusts as a business or asset ownership option is undergoing a resurgence as a consequence of the relative low establishment costs; supposed ease of management, and ability to access capital gains discounts, as well as the ability with discretionary trusts to distribute profits and capital gains in a flexible manner not available with other ownership or holding structures.
Accountants are under increasing pressure to advise clients on not only the taxation consequences of conducting a business or passive asset ownership through a trust structure, but must also consider the consequence of advising on the most appropriate trust or combination, and the capital gains implications of their advice.
But all is not as easy as it may seem, and there are many trips and traps in trusts that require detailed and informed consideration.
Recommending a trust or combination must not be entered into lightly as the incorrect advice may lead to expensive consequences in the future.

Trust Structures:
* Discretionary
* Unit
* Hybrid
* Family
* Testamentary
* Child Maintenance
Combinations:
* Property Holding Trusts
* Discretionary Trusts owning Unit Trusts
* New Zealand Foreign Trusts
* Service Trusts (Phillips Case)

Requirements for an acceptable Trust
Taxation:
* Distribution of Income and Capital Gains
* Income Streaming
* Fringe Benefits Tax
* Losses
* Corporate Beneficiaries
Loans to Beneficiaries:
* Deemed Dividends and Section 109UB
* Resettlements and Refinancing
* Advantages and Disadvantages of options

As a result of this matters will be able to confidently identify , and advise how to maximise the benefit from an appropriate trust or combination; how to effectively utilise corporate trustees and beneficiaries, and be able to understand the complex legislation of family trust elections and the trust loss rules.

We will also gain a clear understanding of the alternatives available for trust structures and combinations, and the resultant capital gains consequences when transferring assets into or disposing assets from a trust.

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