family trusts?, page-2

hey bb,

From what I understand (and I could be completely wrong), is that a trust has to distribute all of its profits/losses each financial year to its beneficiaries.

The setup I have, and im sure a few other traders have it is this.

Trade as the trust. Distribute the profits to the beneficiaries each year to the values you want for tax purposes, and then also have a bucket company in the trust that can handle the remainder/excess profits each financial year over and above the 30% tax threshold.

Of course this extra cash in the company must stay within the company until you withdraw and pay tax on it, but you choose your years wisely when the market isnt so kind to you.

Not sure if that helps.