How to Set Up an Aussie Discretionary Trust!

Checklist to Set Up an Aussie Discretionary Trust

1. Select Trustee

  • Decide if the trustee will be an individual(s) or a proprietary limited company.
  • Understand the risks and responsibilities associated with being a trustee.
  • Consider the advantages of a corporate trustee, such as limited personal liability and simplified administration.

2. Draft Discretionary Trust Deed

  • Identify the beneficiaries.
  • Specify the powers and determinations the trustee can make regarding income and capital.
  • Detail financial aspects like trustee’s remuneration, taxes, and other expenses.
  • Include provisions for personal interests or liabilities.
  • Outline procedures for trustee’s appointment or removal.
  • Contact a lawyer for professional assistance in drafting the trust deed.

3. Settle Trust

  • Have the settlor sign the trust deed.
  • Ensure the settlor is not a beneficiary and is usually unrelated to the beneficiaries.
  • Transfer the initial settlement sum (usually $10) to the trustee.


:rotating_light: You are missing out if you haven’t yet subscribed to our YouTube channel.

4. Trustee(s) Sign Trust Deed

  • Organize a meeting for trustee(s) to accept their appointment.
  • Ensure trustee(s) agree to be bound by the terms of the trust deed.

5. Stamping

  • Check stamp duty requirements in your state or territory.
  • Contact the relevant revenue authority or a local lawyer/accountant for assistance.
  • Pay stamp duty within the specified timeframe to avoid interest charges (if applicable).
  • Arrange stamping through the revenue authority, lawyer, accountant, or a service provider.

6. Apply for ABN and TFN

7. Open Bank Account

  • Open a bank account in the name of the trustee.
  • Ensure the trust deed is stamped before opening the account.
  • Check if the bank requires the trust ABN.
  • Deposit the settlement sum as the first transaction.

8. Trust Operational

  • Start accepting contributions to the trust.
  • Adhere to the terms of the trust deed for borrowing money and making investments.

Additional Notes

  • Keep all records and documentation organized for reference and compliance.
  • Regularly review and update the trust deed and other legal documents as necessary.
  • Maintain open communication with all parties involved in the trust.


Make It Real

:point_right: Start Your Journey Today!