If you pay out cash from the company to the trust fund it will be seen as a dividend to the taxation office. Thus, the trust fund will need to pay tax on it. There is no point paying franking credits through the company in my opinion becuase i dont think that it gets a tax deduction from paying the imputation credits.
If you lend the money from the company, sure you will have to pay 8% in interest to the company a year, but saying that the trust will get a tax deduction on the interest payments.
The best way i think you should do it is lend all the money to the trust fund and then make the company go into insolvency. Therefore, you wont have to repay the company any interest or principal as the company would have no creditors who need money, and thus you wont be chased for the mone by credit agencies. Seems a bit dicy, but just an idea.
