Discretionary Trust - excluded beneficiaries
Use Cleardocs to create all the documents you need to set up a Discretionary Trust (also known as a Family Trust) that specifically excludes certain classes of beneficiaries. You have the option to create:
- a trust that excludes foreign beneficiaries; and/or
- a direct lineal relatives (or lineal descendants) trust.
Cleardocs also has these types of trust available:
Time taken to complete15 minutes.
Cost $ 379.50 (inc. GST)
Printing Optional printing, binding and delivery for $ 66.00
Certificate Optional stamping service in Victoria for $66 plus government fees
Legal Sign-off The master documents are written in plain language and are signed-off by our lawyers at Maddocks.
What documents are included in the Cleardocs package?
This Cleardocs document package includes:
- the tailored Discretionary Trust Deed;
- Consent to act as Trustee (and related minutes if the trustee is a company);
- Written confirmation of ABN registration (optional extra) received direct from the Australian Business Register; and
- an Establishment Kit explaining what to do next.
What information do you need to order this Discretionary Trust through Cleardocs?
You can download our checklist of the information required to order this Cleardocs package.
General information for your Discretionary (Family) Trust
You can read more about discretionary (family) trusts here.
Consider if a foreign person will be involved in the administration or conduct of the trust, is a beneficiary of the trust or is related to a person who has a beneficial interest in the trust. If so, and if either now or in the future this trust will acquire land in Australia, the trustee should obtain advice about whether the trust may be liable for additional stamp duty and surcharge rates of land tax.
The Cleardocs Discretionary Trust - excluded beneficiaries document package allows you to choose whether you wish to limit distributions of income and capital, by excluding foreign persons as beneficiaries.
What is an exclusive or direct lineal relatives (discretionary) family trust?
An 'exclusive' or direct 'lineal' relatives family trust are terms generally used to refer to trusts under which eligible beneficiaries are limited to lineal descendants or blood relatives of a particular person. The range of beneficiaries is generally narrower than that under a 'family trust', which includes non-blood relative family members (such as spouses).
Such a trust is also referred to in common parlance as a 'bloodline trust', or a 'family protection' trust, 'spendthrift' trust, 'pedigree' trust or 'heirloom' trust.
The main issue about such a trust is how to set the parameters around who is (and is not) a beneficiary. Common issues include how to treat adopted and step-children, as there may be no lineal or blood relation and they may be (un)intentionally excluded from benefitting under the trust. The definition of 'child' in the Cleardocs Direct Lineal Relatives Trust includes an adoptive child.
Cleardocs Discretionary Trust Minutes Package — keeping proper records
Cleardocs offers a range of meeting minutes and resolutions for administration of your Discretionary (Family) Trust. It costs $71.50 including GST for your Trust's first Minute or Resolution. Your Trust then has unlimited use of the Discretionary Trust Minutes Package for 12 months.
If you purchase your Trust's 12 months unlimited use of the Discretionary Trust Minutes Package when you set up your Discretionary (Family) Trust through Cleardocs, you will receive a 15% discount on the package.
Cleardocs stamping service — Victoria
Cleardocs offers a stamping service for deeds executed in Victoria. You can select the option for Cleardocs to duty stamp your trust deeds with the State Revenue Office Victoria on your behalf when you set up your trust.
Seek legal advice
The Discretionary (Family) Trust information here should be considered general in nature, and in no way interpreted as legal advice. You must always seek your own independent legal, accounting and financial advice about your particular situation. The summary on this page is for information purposes only.
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.
- Added option to exclude foreign beneficiaries, avoiding duty and land tax surcharges
- Ability to limit beneficiaries to direct lineal or blood relatives
- Copy function for address details
- Bamford case compliant
- Extensive online help and local phone support
- Easy to use question interface
- Full range of tailored discretionary (family) trust set up documents
- Register the corporate trustee of your discretionary trust through Cleardocs
- Change the trustee of your discretionary trust through Cleardocs
- Copy function for address details
- Stamping service for trusts executed in Victoria