family trust

April 10, 2019

Trust Business Structure

Instead of simply setting up a company, many business owners choose to operate and distribute business profits through a trust business structure. The reason is that you can take advantage of the tax benefits of income-splitting, a common strategy in family-run companies. In saying that, there is still a high level of liability with limited asset protection if the trust isn’t set up in the right way. Why set up a trust business structure? The first thing to keep in mind with a trust is that it isn’t a separate legal entity but rather a business structure. The trustee, which is usually the company itself, operates as a business for the benefit of beneficiaries (you as the director and your […]