One of the major risks or disadvantages of a family trust is that it can't distribute capital or revenue losses to its
beneficiaries. As a result, should a trust incur a net loss, its beneficiaries
won't be able to offset that loss against any other assessable income that they
Other risks and disadvantages to setting up a family trust can include:
Tax risks– tax avoidance can be a risky business
and a tax accountant should be consulted before you unknowingly get yourself in
The name holding the
trustee is the legal owner and this individual’s name will appear across all
Loss of ownership of
ownership of property is lost when managed through a trust.
administration– this costs
time and money long-term.
Of course, with any type of legal
documentation or taxation advice, it's always advisable to consult the experts
to best understand your individual situation.
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Thursday, 22 June 2023