Client often got a lot of enquiries about trust structure, some want to use trust to invest properties or holding assets. We wrote an article for family trust before. Today, I would like to write some general information related to other types of trusts. For more professional suggestions, please consult with our professional team.
What is trust?
Trusts are widely used for investment and business purposes. A trust is an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries. While in legal terms a trust is a relationship not a legal entity, trusts are treated as taxpayer entities for the purposes of tax administration.
Trustee
A trustee may be a natural person or a company. The trustee is responsible for managing the trust's tax affairs, including registering the trust in the tax system, lodging trust tax returns and paying some tax liabilities.
Beneficiaries
A Beneficiary can be a person, company, another trust or a charitable entity that nominated to receive the benefit of the trust property. Beneficiaries may have an entitlement to trust income or capital that is set out in the trust deed or they may acquire an entitlement because the trustee exercises a discretion to pay them income or capital.
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Claire Chang