Client Services
Can a Family Trust Operate a Business?
Yes, a family trust can operate a business.
Trusts can be useful as they provide an opportunity to distribute income to different family members, which can assist in reducing the overall tax paid on income and they can also be useful in passing on a business from one generation to the next because the trust can continue even though some of the original individuals retire or die.
To set up a family trust, you need to have a trust deed prepared and it is important that you obtain good legal advice about the structuring of the trust before you proceed. If you are considering using a family trust structure, it is often best to use a company as the trustee.