TRUST

 A trust is a structure where a trustee carries out the business on behalf of the trust's members (or beneficiaries). 

In a trust structure, a trustee holds your business for the benefit of others (the beneficiaries).

A trustee can be a person or a company, and is responsible for everything in the trust, including income and losses.

Trust structures are expensive and complicated to set up, and are generally used to protect the business assets for beneficiaries. The trustee decides how business profits should be distributed to the beneficiaries.

Trusts are complex to set up and you'll need time and the right skills to do it properly. It's best to see a qualified, licensed professional to help you understand what's involved and the registrations you'll need

Advantages of a Trust include that:

• limited liability is possible if a corporate trustee is appointed
• the structure provides more privacy than a company
• there can be flexibility in distributions among beneficiaries
• trust income is generally taxed as income of an individual.

Disadvantages of a Trust include that:

• the structure is complex
• the Trust can be expensive to establish and maintain
• problems can be encountered when borrowing due to additional complexities of loan structures
• the powers of trustees are restricted by the trust deed.