When considering whether to add a family trust to the main optimisation step, the engine will consider whether a family trust makes sense from the perspective of:
1:) Asset protection
2: Tax savings
A trust will be established for asset protection purposes in the following circumstances:
a) Protection against creditors is set as an objective; or
b) Client has a profession that is more at risk of litigation. Please refer to the below list.
Occupations at risk of litigation
A trust will considered for tax purposes under any of the following scenarios:
1: Client is a couple, or if single there are adult children to distribute income to.
2: Clients have different tax rates, and both individuals pay some income tax.
3: Both clients pay tax at a higher rate than the company tax rate.
4: Either client has pre-existing CGT losses.
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