Discretionary (Family) Trust
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You can create all the documents you need to set up a Discretionary (Family) Trust (often commonly known as a Family Trust). You can choose whether the trustee is to be a corporation or individuals. You should get legal advice about this. We cannot give that advice.
What's included in the Discretionary (Family) Trust document package?
The Discretionary (Family) Trust document package includes:
- Consent to act as the Trustees (and related minutes if trustee is a company)
- the Trust Deed
- an Establishment Kit telling you what to do next.
The whole process of setting up a Discretionary (Family) Trust takes about 5-10 minutes. Once you've answered the questions on the Cleardocs system and paid you can instantly download the documents.
You can go through the whole interface etc. before deciding whether to proceed to pay.
Legal sign-off by Maddocks
All documents for the Cleardocs Discretionary (Family) Trust are signed-off by our lawyers at Maddocks.
What information do you need to order a Discretionary (Family) Trust from Cleardocs?
You can download our checklist of the information required to order a Discretionary (Family) Trust here.
The Discretionary (Family) Trust structure
The Cleardocs Discretionary (Family) Trust is a trust under which the trust's trustee or trustees may distribute trust income or other trust property:
- among the beneficiaries named in the schedule to the trust deed, or
- to any one or more people who fit within the description of the general class of beneficiaries which is also set out in the schedule.
The distributions of trust income or other trust property may be made to any number of these eligible beneficiaries and in any proportion at the trustees' complete discretion.
If you require a trust in which the beneficiaries have a fixed interest in the income or other trust property, or where the class of eligible beneficiaries is restricted (say, to only blood relatives of the named beneficiaries), then you must seek legal advice. Please contact us so we may refer you to Maddocks who can provide you with a free estimate of fees for drafting a deed to suit your needs.
Cleardocs also has available a hybrid trust deed and a unit trust deed. To find out more, go to this page then click on the relevant button.
More information about Discretionary (Family) Trusts
Click on the links below to see the information
- What is a Discretionary (Family) Trust in Australia
- What is the trust deed
- What is the settlor
- What is the trustee
- How can Discretionary (Family) Trust income be distributed?
- Family trust elections — information from the ATO on income distributions
Frequently Asked Legal Questions for Discretionary (Family) Trusts
- Why can't a sole trustee be a sole beneficiary of the discretionary (family) trust?
- Can an estate be named as a beneficiary of the discretionary (family) trust?
- Can the trustee of the discretionary (family) trust distribute to an estate if the beneficiary is deceased?
- Can I name a charitable entity as a beneficiary of the discretionary (family) trust?
- Can a trust be a beneficiary under the discretionary (family) trust?
- Can a trustee be a beneficiary under a discretionary (family) trust?
- Can a corporate trustee of the discretionary (family) trust be a beneficiary?
- Can I have 2 corporate trustees for my discretionary (family) trust?
- Why can't a beneficiary transfer their "interest" under a discretionary (family) trust to someone else?
- How will distributions from the discretionary (family) trust to a beneficiary who resides overseas be taxed?
- Does the Settlor have to reside in Australia?
- Does the settled sum have to be transferred into a bank account or can it be settled with cash?
- Does a Cleardocs trust give me asset protection?
- When should the trustee apply for an ABN for the trust?
- Will the trust be entitled to an ABN?
- What do I do if my bank won't give me finance because "the trust deed doesn't allow it"?
- What do I do if the discretionary (family) trust deed is lost?
- Does the Cleardocs discretionary (family) trust deed allow for a church as a beneficiary
- I want to change the trustee of my discretionary (family) trust from an individual to a corporate trustee. I have not yet incorporated the company to act as trustee. What do I do?
- When naming beneficiaries of a discretionary trust (the first trust), can I name a trustee in their trustee capacity (the second trust)?
Questions or further information
If you have questions:
- about how to use Cleardocs, contact the Cleardocs helpline on 1300 307 343.
- about legal issues, contact the Cleardocs helpline on 1300 307 343. If you need advice, we will arrange for you to speak with a lawyer at Maddocks. The firm provides a free legal helpline in relation to the documents Cleardocs provides. If you require other legal advice in relation to your particular circumstances, then this will be charged for.
