1. Select the trustee(s)
The trustee(s) is the person or company responsible for administering the trust in accordance with the trust deed. The trustee is responsible for managing the trust assets and any distributions to the trust’s beneficiaries. Having a company as a trustee minimises personal liability and can help to avoid unnecessary administration. If you’d like to establish a private company to act as trustee, the company will need to be established and registered prior to drafting the trust deed.
2. Draft the trust deed
Our form is quick and easy to complete, with plenty of help and useful explanations along the way. Your personalised trust deed will be available for download in PDF format within 5 minutes of payment confirmation.
3. Settle the trust
The trust is signed and then settled by the settlor, who must give the initial settlement sum (typically $10) to the trustee. The settlor is typically a close but unrelated family friend, accountant or lawyer, who usually has no further involvement in the trust.
4. Trustee(s) sign trust deed
The trustee(s) is required to hold a meeting in which they accept its/their appointment as trustee(s) of the trust and agree to be held by the terms within the trust deed.
Meeting minutes are provided in the document pack to cater for a corporate trustee.
5. Stamp the deed
Depending on the governing state chosen for the deed, you may need to pay stamp duty on the trust deed. As stamp duty is state based, it applies differently in different states and territories in Australia. You can check for further information about possible fees and get contact information for each state’s revenue authority. Stamping can be arranged directly through the revenue authority in your state, or by a lawyer or accountant.
6. Apply for a TFN and ABN
After the Trust has been established, the trustee(s) can apply for a Tax File Number (TFN) and Australian Business Number (ABN) for the trust. Both the ABN and TFN can be applied via Merit Accounting. Note that it can take up to 28 days for both numbers to be processed and received from the Australian Taxation Office (ATO).
7. Open a bank account
A bank account should be opened for the trust in the name of the trustee in their capacity as trustee for the trust (i.e. not a personal account under their name). Depending on the bank chosen, you may need to provide the trust ABN and a certified copy of the trust deed on application. Once the account has been opened, the first deposit should be the whole amount of the settlement sum (typically $10). The settlement sum must be deposited before any other deposits or transactions are made by the trust.
8. You’re ready to go!
The trust is now operational and is able to accept further contributions. Loans and investments may also be made subject to the trust deed.
Total cost $1,300 (ex GST) if the trustee is a company.
