Difference between a Discretionary Trust vs Family Trust

Majority of professionals say that there is no difference, but there is. Difference which can make a big impact on you, your business and family financially.
"What is the difference between a Discretionary Trust and Family Trust."
In our latest webinar recording Derek will explain the differences between the 2 trusts and why its important to understand and plan ahead.
#discretionarytrust #familytrust #trust #ato #taxation

[@nickvass007]

Great video
Thank you

[@NP-ut8dw]

Hi Derek, Thank you for providing information in simpler form. Makes lot of sense now.

[@hungnguyenduy2067]

Thank you for the knowledge that you provide in this video. it is super helpful

[@kellyjane3966]

Just want to say I enjoy learning from your advice .do you have or take clients from adelaide?

[@mangoman9290]

A great video. Does the transition from a Discretionary Trust to a Family Trust remove all nominated Discretionary Trust beneficiaries?

[@TwelveAccounting]

yes. you will need to adopt a brand new trust deed. derek

[@natalielong-dixon1892]

What happens if the test person passes away please?

[@binaryagenda]

Derek, can a family trust make a distribution to charities or a non-profit e.g. a church? Or would you need to have a separate discretionary trust for that?

[@TwelveAccounting]

great question. i'm going to find a good trust lawyer to answer that question properly. my understanding is that a discretionary trust can as long as the charity is specifically named (not just 'a charity') in the trust deed. i'm not certain regarding a 'family trust', i'm thinking no, but will seek clarification. derek

[@Donna-C]

@@TwelveAccounting
What was the answer to this?

[@yaritzasalazar5296]

Can you distribute from a family trust with profit to a family trust holding a negative gearing property

[@TwelveAccounting]

I believe you can as long as the test individual is the same in both family Trusts. derek

[@yaritzasalazar5296]

@@TwelveAccounting Thanks