Hi Tech; The Trust just gives you the advantage of spreading the...

Hi Tech;

The Trust just gives you the advantage of spreading the gains to multiple beneficiaries, in a progressive tax system such as ours, there can be some great tax savings, but this depends on everyone's income levels.

You would only be paying corporate tax rates if you distribute the income from the Trust to a Company beneficiary. But keep in mind there must be a specific cash distribution made to the company (an area the ATO has really been all over in recent years). Therefore, the proceeds are now sitting in the Company's bank account, so how to get them out? Pay a dividend.

Capital gains can also be 'streamed' (depending on the Trust Deed) so the gains can be used by specific persons, with say, capital losses available in their name.