Australia Law

Have Australian Law Questions? Ask a Lawyer Now.

Ask a Lawyer,
Get an Answer ASAP!

Australia Law

I have just created a discretionary trust. I have an ex

Customer Question
Hi I have just created...
Hi I have just created a discretionary trust. I have an ex partner who has devoured my bank account and is still hungry for more. My daughter and I are the beneficiaries. I want to know if I got paid straight into the trust instead of my account if I would get double tax and if she could still devour more funds. Also I'm really unsure how to effectively utilise a trust. How many things I can gift to it a year, should I employ myself in the trust, how to not be devoured by the ato and my ex partner. If your answer is long. I am the trustee of the trust as well. If you need to right a big response please use my email address: *****@******.***
My name is***** can u please use my email address for I am at work and at a loss. Please reply. I look forward to your answer. Thank you.
Submitted: 2 years ago.Category: Australia Law
Show More
Show Less
Ask Your Own Australia Law Question
Answered in 5 hours by:
5/6/2015
Solicitor: Leon, Solicitor replied 2 years ago
Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 45,113
Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
Verified
Good Morning
My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question.
Have you and your ex partner got court orders to finalise your property?
How long ago did you separate and am I correct in assuming you were not married?
Ask Your Own Australia Law Question
Customer reply replied 2 years ago
We were not married and we have no property.
Customer reply replied 2 years ago
Separated 8 months ago
Solicitor: Leon, Solicitor replied 2 years ago
Good Afternoon
He has 2 years from the date of separation to make a claim through the courts.
If you move assets now the court will reverse the transfer and give him a share.
The law will apply the following 4 steps
Step 1: Determine what the assets are and their value
This will include all assets and their value as at the day that you are dividing them. It does not matter whose name the assets are in, they will form part of the matrimonial pool. Superannuation entitlements are also included.
Step 2: Determine what contributions you and your spouse made towards the assets.
This includes a consideration of both financial and non-financial contributions. Consideration is given to what assets each of you brought into the marriage as well. The weight given to your initial contribution will be dependent upon the length of your relationship. The longer the relationship the less weight given to the initial contribution.
Step 3: What are each of your future needs.
Consideration is given to your respective ages, your comparitive income earning capacity as well as other factors.
If these things don't balance equally for each spouse, then an adjustment is made in the percentages.
Step 4: Make an order that is just and equitable between both spouses
If you can he can reach your own agreement that is best. if not then I suggest you lay low until 2 years pass and once they do make the changes and if he brings an action he is out of time.
I hope this makes sense and is of assistance.
If there is nothing further thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon
Ask Your Own Australia Law Question
Customer reply replied 2 years ago
The other part of the question was how I can best utilise a trust, getting my pay put into it. Tax, do I get double taxed? I am unsure how to best utilise a trust??
Customer reply replied 2 years ago
I'm the trustee of the trust. You answered one part o my question. Which I thank you for. But primary I need to know how to use the trust. Referring to my first question.
Solicitor: Leon, Solicitor replied 2 years ago
Good Afternoon
The trust is taxed in the hands of the trustee on the income it earns. So you should have a corporate trustee and then any income it earns is taxed at 30%
If it earns no income there is no tax.
If you are the trustee and also a beneficiary then it may be an issue because it may be seen that it is you that is the real owner if there is any court action.
Are you running a business? If not you cannot have your pay paid into the trust. You are an employee and you have to be paid.
The Trust can give away funds and assets depending on what the Trust deed says. If it is a discretionary trust then that mean the trustee decides how the funds are distributed and to who.
I hope this answers your question?
Ask Your Own Australia Law Question
Customer reply replied 2 years ago
If I applied for an abn for the trust would that be better for tax purposes. I'm going to start working as a subcontractor and wanted to use the trust as who I work for. Or is that to hard. Do I need to register a company pty ltd, make it the trustee, get paid into the trust which probably gets 50% tax, pay the trustee company which will pay 30% tax on that then decide what to pay me as the director of that company. I need to know how to be clever with the trust???
Customer reply replied 2 years ago
All this to minimise tax.
Customer reply replied 2 years ago
Thank u for your reply before as well it was helpful.
Solicitor: Leon, Solicitor replied 2 years ago
Good Morning
If your trust is to trade as a business then you will need an ABN.
It is not too hard but you have to make sure you have the correct set yo and your accountant will assist with this.
You have to set up the Company and then make the company Trustee.
The Trust then enters the contract and is paid. You are an employee. The trust pays you and income and withholds tax. As the Trustee is a company the Trust is taxed at 30% of the total income it earns.
It separates you from the trust.
Your accountant will tell you whether it is a tax benefit or not.
Good luck
You are very welcome and thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon
Ask Your Own Australia Law Question
Solicitor: Leon, Solicitor replied 2 years ago
Good Morning
I'm just following up our discussion earlier this week and seeing whether there is anything else I can assist you with.
If I have missed anything, or you have any further questions please let me know.
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
I look forward to hearing from you.
Regards
Leon
Ask Your Own Australia Law Question
Customer reply replied 2 years ago
Does the tax rate for a trust change from 46% or so, if it has an ABN? How many things can you gift it a year? Can you sell it something and forgive the payment? If so how many times can you do it? Every time the trustee (myself) changes something, e.g change of trustee. Do I need to go get a justice of the peace to stamp, date, sign documents or how is
It done? A lot of questions I know.
Solicitor: Leon, Solicitor replied 2 years ago
Good Morning
A trust is taxed at the rate of the trustee.
If you are the trustee then the tax s at your top marginal tax rate. If the trustee is a company then it is 30%.
What you can gift is dependent on the trust deed.
You may waive the payment but you there will still be stamp duty if you mean property and also capital gains tax if it is not your home at the market rate.
If you change trustees you need to have a new document prepared and the names on all property changed.
If you add beneficiaries you pay stamp duty on the rust as you resettle it.
Your accountant can explain all this to you.
They are the ones that have to give you this advise before you set it up.
Good luck. If there is nothing further thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon
Ask Your Own Australia Law Question
Ask Leon Your Own Question
Leon
Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 45,113
45,113 Satisfied Customers
Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

Leon is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Deborah Awyzio

Deborah Awyzio

Solicitor

863 satisfied customers

Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience

Sean

Sean

Experienced lawyer

855 satisfied customers

Law degree with 1st class honours from Australian National University.

James G.

James G.

Lawyer

17 satisfied customers

Australian Legal Practitioner

Darren Kruse

Darren Kruse

Solicitor

16 satisfied customers

Practising in in Personal Injury, Workcover, Civil Disputes, Family, Wills and Estates and Criminal law.

Daniel

Daniel

Solicitor

5,800 satisfied customers

Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court

James D. Ford

James D. Ford

Solicitor

1,600 satisfied customers

Consulting Principal at Nexus Law Group

John Melis

John Melis

629 satisfied customers

Principal Lawyer at Legal AU Pty Ltd

< Previous | Next >

Related Australia Law Questions
Mynmother has been in aged care for 4 years and last week
Mynmother has been in aged care for 4 years and last week after receiving the monthly account I noticed 2 lots of extra service payments (totalling approx $1000 ) so I queried the account with the rec… read more
Leon
Leon
Solicitor
45,113 satisfied customers
I have had what was broadband and a phone which cost me
I have had what was broadband and a phone which cost me around $100 to $110 per month. I had the NBN installed with the a phone that does not work with a power failure and I have been billed $260 … read more
Leon
Leon
Solicitor
45,113 satisfied customers
I there. I have a problem with a bank that does not want to
I there. I have a problem with a bank that does not want to release a loan to another institution. Is there anything I can do to force them to do it. This bank has being dealing the transferal of the … read more
John Melis
John Melis
Diploma In Law
629 satisfied customers
My partner of 13 years took his own life at the end of May
My partner of 13 years took his own life at the end of May this year. He had a 20 year old will in which I was not mentioned so his estranged Tasmanian family has been given everything. Including his … read more
Leon
Leon
Solicitor
45,113 satisfied customers
I purchased an off the plan apartment last February 2017 -
Hi I purchased an off the plan apartment last February 2017 - no construction ever started & I was informed the developer had difficulty with finance. Last week I was told by the real estate by teleph… read more
Leon
Leon
Solicitor
45,113 satisfied customers
My home keys were taken without permission by daughters who
My home keys were taken without permission by daughters who do not live with me. They are entering my home while I am not at home, without my permission and refuse any communication with me … read more
John Melis
John Melis
Diploma In Law
629 satisfied customers
How i can make complaint against meachnic. Victoria
how i can make complaint against meachnic JA: What state are you in? It matters because laws vary by location. Customer: victoria JA: Has anything been filed or reported? Customer: no JA: Anything els… read more
Leon
Leon
Solicitor
45,113 satisfied customers
Signed contract in March for townhouse that is
Signed contract in March for townhouse that is unsatisfactory. How much money & chance for legal claim to exit contract? … read more
John Melis
John Melis
Diploma In Law
629 satisfied customers
I would like some advice on a pending civil court case which
Hi there i would like some advice on a pending civil court case which is to be held in Sydney on Tuesday. Quikfund vs Melita Pilch (me) can you help? … read more
Leon
Leon
Solicitor
45,113 satisfied customers
I search for a solicitor titled CPD .... Brisbane, A title
I search for a solicitor titled CPD .... JA: What state are you in? It matters because laws vary by location. Customer: Brisbane JA: Has anything been filed or reported? Customer: A title for for unit… read more
Leon
Leon
Solicitor
45,113 satisfied customers
Tina, not sure how this works...I'm in Australia and have an
hi Tina, not sure how this works...I'm in Australia and have an issue with a policewoman who has lied to a court ...As a result I've been issued with an Interim Intervention Order...now she wants to w… read more
Leon
Leon
Solicitor
45,113 satisfied customers
Back in September my Tax agent sent all my original Tax
Back in September my Tax agent sent all my original Tax return documents to the wrong address and they have now gone missing. … read more
Leon
Leon
Solicitor
45,113 satisfied customers
How can a person with dual citizenship be ineligible for
How can a person with dual citizenship be ineligible for election to parliament when members of parliament are required to swear allegiance to the ruler of a foreign power? OathI, A.B., do swear that … read more
John Melis
John Melis
Diploma In Law
629 satisfied customers
Do Optus have an obligation to provide tech support? OR to
Do Optus have an obligation to provide tech support? OR to make it clear that they do not intend to offer tech support in their PDS? Because they do not publish a help or support phone number anywhere… read more
Leon
Leon
Solicitor
45,113 satisfied customers
I am in WA. I feel I am been treated unfairly by my
I am in WA. I feel I am been treated unfairly by my employer. … read more
John Melis
John Melis
Diploma In Law
629 satisfied customers
Is there some one I can find over the phone to quickly
HI is there some one I can find over the phone to quickly discuss or is here best? … read more
John Melis
John Melis
Diploma In Law
629 satisfied customers
Can I change my legal aid funded lawyer if I am not happy
Can I change my legal aid funded lawyer if I am not happy with their representation. This is relation to a application for shared custody of a child … read more
John Melis
John Melis
Diploma In Law
629 satisfied customers
When will I be eligible to apply for a spent conviction over
when will I be eligible to apply for a spent conviction over drink driving. the first offence was in 2011 and my last one was in 2015 … read more
Leon
Leon
Solicitor
45,113 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x