Today's show is about trusts. A trust is another way to structure your business that has some unique benefits. Here are the 5 things you need to know about trusts.

Separate entity

A trust is a separate legal entity. That means that the people involved in the trust can’t be sued for the debt the trust incurs. So the separation is very important from a legal point of view, because it just separates out that liability and protects the people involved in the trust. So that's number one. Number two beneficiaries.

Beneficiaries

Who is going to benefit from this trust? That decisions will have big ramifications for how the business operates. The beneficiary can be a person or a company. Or it could even be members of your family.

Power of appointment

This is someone in the trust will have the power to appoint and remove the trustee. That’s a lot of power. Never choose someone for this role that you don’t trust implicitly.

Trustee

The trustee will manage the day-to-day affairs of the trust.

Tax Benefits

In Australia, there are great tax benefits to having a trust. You can distribute income, you can move things around and really get the best tax position for you and your family.