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Discretionary Trusts: What you will need.

Trustee - this is the person who holds and manages the trust property for all the potential beneficiaries. The trustee also makes distribution decisions. The most common choices are:

• A Pty Ltd company controlled by the person who wants to set up the trust (preferably a company not involved in other “at risk activities”)
• An individual (or individuals)

Beneficiaries - these are those who you may want to benefit from the wealth of the trust. The most common choices are:

• Husband and wife
• Children
• Grandchildren
• Spouses past and present
• Not for Profit Organisations chosen by the trustee from time to time

Note: these are potential beneficiaries. The list should include those you are going to want to be likely to distribute to. The trustee is not obliged to distribute to anyone. Just because someone is named in a discretionary trust as a potential beneficiary does not mean that they have a claim on the trust property.

Appointer - this is the person or persons with power to hire and fire the trustee. They therefore hold all the power.

Settlor - this is the person, often your lawyer or accountant who initially sets up the trust and then steps away.

Establish a lawyer certified online Discretionary Trust 24/7

More trust resources can be found at www.onlinelegal.com.au

Company Incorporation: online Company Incorporation is now a reality. Gone are the days of faxing your order off and waiting for the better part of a day or more for the documents.

And gone are the days of buying a shelf company with a meaningless name and then having to change it.

Here and now you can incorporate a company real time, under your preferred name (as long as it is available, which you can of course check online. Click here to go to the ASIC Identical Names Checker).

Tip: Incorporate a Company = Register a Company. (They mean the same thing).

FAQ’s about online company formation:

• How long does it take to incorporate a company online? 20 minutes.
• Do I get an ACN in 20 minutes? Yes
• Do I get an ASIC Certificate of Incorporation in 20 minutes? Yes
• What about what I need to open a bank account? Emailed to you in 20 minutes
• What about a common seal? You don’t need one any more
• Do I have to sign anything? The first office holder or office holders (i.e. director and secretary) must sign Consents to act. They are the first documents emailed to you. You say you have them and then continue.
• Do lawyers guarantee the documents? Yes

Incorporate now:

Company Registration $937.50

Other online Companies products from www.onlinelegal.com.au:

Sole Director Package $49.50

Change to Constitution $99.00

APRA Reports that: “Small funds’ assets … [in the year ended 30 June 2005] experienced strong growth, increasing by 26.3 per cent to $175.2 billion.”

Source: “APRA statistics show strong growth in superannuation industry.” Thursday, 20 April 2006. No. 06.24 www.apra.gov.au  

Gone are the days when the entry and continued compliance costs of Self Managed Super make it inaccessible for most.

The reality, it seems to me, is that most Australian’s will be more careful and savvy with their own money than they will be with money that belongs to someone else. Self Managed Super allows you to make decisions about the types and location of investment of your hard won Superannuation nest egg.

Speak with your accountant or financial advisor about Self Managed Super this side of 30 June.

Then use online Self Managed Super resources from www.onlinelegal.com.au to set up your Super Fund.

Superannuation trust (SMSF) $137.50

Asset Protection is a word that rouses suspicion of unscrupulous corporate high flyers taking advantage of others. That is the furthest thing from my mind.

Asset Protection should be considered by all sober minded rational people living in an increasingly “rights driven” litigation mad society. Blame is often used as a lever for financial win-fall. The concept of reasonable recovery for loss is often forgotten.

This is particularly true for those involved in small and medium sized business. Here is a sample of unfair risks faced daily by many participants in this sector:

• Customers simply refusing to pay
• Customers (or others in the vicinity) making claims that the action (or lack of action) of the business leadership has caused them loss
• Personal guarantees having to be provided by the business leaders to every supplier of the business
• Staff starting a project and dropping the ball or simply leaving the game
• A mistake (which honestly, everyone makes) costing the business dearly

These risks mean that the leaders of these business enterprises must carefully examine just who should take on the role of “director” and so put themselves directly and often personally in “the line of fire.”

The Corporations Law in Australia has allowed a single officeholder (that is one person being the director and secretary) for some time now. It seems to me that small business owners must take advantage of this and ensure that only one of the partners to a marriage or de-facto relationship take this role and the risk that goes with it.

Here’s all you need to make a change from a multiple director company to a single director company:

Sole Director Package $49.50

Another useful resource relevant to all business leaders (and particularly those involved in leadership of Not for Profit Organisations):

Personal Asset Protection Health Check (for those involved in leadership of Not for Profit Organisations) LawPack $19.95

More useful resources can be found at www.onlinelegal.com.au. For example:

• online Companies
• online Trusts
• online Super Deeds
• online Division 7A Loan Agreements