Trusts that will cut tax and keep wealth in the family
Testamentary discretionary trusts are a good way to transfer wealth between generations in a tax-effective way and protect assets from relationship breakdowns.
As Benjamin Franklin famously said, “nothing is certain except death and taxes”. While there’s not much that can be done about death, with some careful estate planning it is possible to reduce the tax burden for beneficiaries.
Even though there is no official “death duty” in Australia, tax certainly pervades many aspects of the distribution of an estate. The way distributions to beneficiaries are structured is of paramount importance.
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Michael Hutton is wealth management partner at HLB Mann Judd Sydney.
