Focus on family trust elections
If your business and investments are tied up in a trust, there’s no time like the start of a new financial year to consider the importance of family trust elections.
Why so? Because there are consequences and benefits and it’s important to understand the impact of family trust elections on succession planning. But it’s complex. Michael Jones highlights the key considerations with the suggestion that you also seek a good conversation with your accountant if this is an area of tax law affecting you.
Audio by Business Essentials. For more business interviews please visit: https://www.businessessentials.com.au/
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The important role of Family Trust Elections
Trusts are a very popular way for families to hold investments and carry on business because of the clear advantages of asset protection and income management. However the flexible nature of trusts also gives rise to compliance complexities. Family trust elections are an example of a trust compliance complexity. This article provides an overview of family trust elections, including the important impact family trust elections have on the transfer of family assets to the next generation.