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Lineal Descendants Discretionary Trust - from $440

PRODUCT INFORMATION

FLEXIBLE LINEAL DESCENDANTS DISCRETIONARY TRUSTS

The Topdocs lineal descendants’ discretionary trust is designed to protect the assets for the Specified Beneficiary and their natural heirs and related entities instead of the usual wide range of general beneficiaries such as spouses and extended family members. The Topdocs Lineal Descendants Discretionary Trust also ensures control of the trust is retained by the natural heirs for additional family law asset protection purposes.

They are often used:

  • To ensure that the property of the trust will remain only with the “blood relatives” of the initial nominated trust beneficiary;
  • Where there is a concern that beneficiaries are likely to suffer marital problems;
  • Where you wish to maximise the chances that assets will provide for the education and upbringing of children or grandchildren;
  • Where tax planning with spouses may not be as high a priority as the protection of the assets from the Family Court’s reach.

The Topdocs lineal descendants discretionary trust uniquely comes with two distinct options as follows:

Option 1

The specified beneficiary, their natural heirs and related entities are to obtain ALL capital BUT income distributions to spouses and a wide variety of extended family members are allowed for income tax planning purposes.

Option 2

The specified beneficiary, their natural heirs and related entities only are to obtain ALL capital AND income.

download Review the Lineal Descendants Discretionary Trust order checklist download See the list of documents you will receive

WHY ORDER A TOPDOCS LINEAL DESCENDANTS DISCRETIONARY TRUST?

  • The ability to protect assets specifically for the lineal descendants of the person for whom the trust has been established
  • The options of still providing for income tax planning for spouses and extended family if required
  • Quality trust deed that provides extensive estate planning and tax management strategies including specific appointor provisions
  • Fully provisioned for income streaming
  • Overnight delivery with your trust documents bound in a quality binder
  • Supported by the specialist trust lawyers at Topdocs Legal

MORE INFORMATION

You can learn more about the Topdocs Lineal Descendants Discretionary Trust documentation in the RELATED INFORMATION tab.

Should you have any queries or require more information, please call the team at Topdocs on 1300 659 242.

ORDERING OPTIONS

ORDER BY FORM

Order your document by completing the form below and returning it to us by email or fax.

Should you have any queries or require more information, please call the team at Topdocs on 1300 659 242.

PRICING

ADVISER^
(inc GST)

RETAIL
(inc GST)

INSTANT EMAIL DELIVERY


  • Due to the complex nature of this document, it is only available through Full Service delivery

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FULL SERVICE DELIVERY


  • your document is professionally printed and bound, reviewed by our legal team where required, then delivered to you by express post
  • delivery is generally the next day

$440


$550


adviser pricing ^ Adviser pricing is available to accountants, financial planners, SMSF specialists and legal practitioners. This pricing is automatically applied when you join Topdocs and sign into the Document Portal to order your documents.

YOUR DELIVERY OPTIONS

When you order a document you can select how you would like it delivered to you. Your options are:

FULL SERVICE DELIVERY

  • your document is professionally printed and bound, reviewed by our legal team where required, then delivered to you by express post

Should you have any queries or require more information, please call the team at Topdocs on 1300 659 242.

RELATED INFORMATION

MORE INFORMATION

Outlined below is additional information relating to the document you have chosen.

The Topdocs Lineal Descendants Discretionary Trust ... [more]

The Topdocs Lineal Descendants Discretionary Trust deed has been carefully drafted to benefit the natural heirs of the specified beneficiary. You can learn more about the Topdocs Lineal Descendants Discretionary Trust in the document below.

download Download the Topdocs Lineal Descendants Discretionary Trust information

Estate Planning and Family Trusts ... [more]

Your Will can only do so much, as company or trust assets are not part of your estate. Family discretionary trusts (simply referred to as “family trusts”), in particular, bear a close look when using them as part of your estate planning. Family trusts can be important asset protection vehicles should you be concerned about the potential of a challenge against your Will, or the prospect of bankruptcy. Proper maintenance of your trust records is essential.

If you have a corporate trustee of your family trust, retain the last annual return or your ASIC records detailing the current company directors and shareholders. It is also important to retain a records of any special rights attaching to the company shares (for instance, whether additional voting rights have been conferred).

This is because the control of the corporate trustee is maintained through the shareholders who appoint the company directors. Company constitutions often contain a clause acknowledging that the deceased shareholder’s legal personal representative is the only person authorised to deal with the shares. As a result, the Executor or Executors appointed under your Will can potentially control the corporate trustee (subject to the office of Appointor of the trust, discussed below).

You also need to retain an up-to-date, stamped trust deed. Any variations must also be retained to provide a complete document. It is vital to read and understand the trust deed, as it is the source for the powers and responsibilities of the trustee and for the tax-effective distribution of trust assets.

The trust’s records must include the balance sheet setting out the trust assets (remember, these are not assets that you personally own, and therefore your Will cannot direct how they will be distributed).

However, the balance sheet may also show undistributed beneficial entitlements or beneficiary loan accounts that have arisen due to the exercise of the trustee’s discretion to distribute capital and/or income from the trust. If so, then such items are no longer trust assets and have now become assets belonging to the appointed beneficiary of the trust. If you, as the will maker, are one of the beneficiaries, then your trust entitlement will form part of your estate and can be dealt with through your Will.

Family trust deeds often have an Appointor and/or Guardian as officers of the trust. The Appointor (and the Appointor’s successors) will retain ultimate control over the trust as it is the Appointor who has the power to appoint, remove and replace the trustee of the trust (even a corporate trustee). If the trust deed does not name specific successors to an Appointor who dies or who loses capacity, then the deed often contains a provision to allow the Appointor’s legal personal representative to take over upon the death or incapacity of the Appointor. This means that the Executor or Executors appointed under your Will would ultimately control the trust.

A Guardian’s role is to oversee the exercise of the trustee’s discretion. A trust deed can also provide that the Guardian’s legal personal representative take over upon the Guardian’s death or incapacity. Remember also that generally a trust has a limited lifespan (known as the Rule Against Perpetuities). In all states but South Australia, the maximum life of a trust is 80 years. This would impose a limit upon the effective use of the family trust as a vehicle for estate planning. However, it is worth noting that, although South Australia has abolished the Rule Against Perpetuities, s 62 of the Law of Property Act 1936 (SA) provides that 80 years after the date of a disposition, parties may apply to the court for orders to vary the disposition so that any remaining unvested interests will immediately vest. Alternatively, if interests under a disposition are unable to vest or are unlikely to vest within 80 years, then s 62 allows the parties to apply to the court to vary the terms of a disposition to ensure that those interest will vest within 80 years anyway. Therefore, the application of s 62 of the Law of Property Act 1936 (SA) achieves a similar final result as the Rule Against Perpetuities.

As one final point, you may want to arrange for a Deed of Vesting of the family trust that to wind up the trust upon your death to ensure that the trust assets will form part of your estate (and therefore be controlled through your Will). However, this is a particularly complex area, and consideration must be given to potential CGT, stamp duty and even GST liabilities upon winding up the trust.

download Download the Topdocs Estate Planning and Family Trusts information sheet

Should you have any queries or require more information, please call the team at Topdocs on 1300 659 242.