How many trustees can a discretionary trust have?

It is generally a good idea to have at least two Trustees at any time. Care should be taken when choosing Trustees. The people appointed must be over 18 years of age and of sound mind. The Trustees should be people who the Settlor believes will act in the best interests of the Beneficiaries.

Who are the trustees of a discretionary trust?

The trusts are discretionary trusts so no individual (s) has a vested interest. As such, no beneficiary (ies) influence or control the trust. The only persons who may are the trustees. The trustees hold over 25% of the company’s shares and voting rights and have the right to appoint directors (and so satisfy conditions one, two and three).

Who is a corporate trustee under the Duties Act?

Section 209 of the Duties Act defines a corporate trustee as a corporation, other than an authorised trustee corporation, that is the trustee of a discretionary trust that: has an indirect interest in dutiable property and that interest is held on trust for the discretionary trust.

Who is the corporate trustee of XYZ discretionary trust?

As X Pty Ltd is a corporate trustee of the XYZ Discretionary Trust, C obtains a benefit relating to the property held by the corporate trustee on trust. This Public Ruling takes effect from 20 June 2011.

Who are the remaining trustees of a trust?

The remaining trustee is a professional trustee. The trusts are discretionary trusts so no individual (s) has a vested interest. As such, no beneficiary (ies) influence or control the trust. The only persons who may are the trustees.

Who is the trustee in a discretionary trust?

In a discretionary trust (sometimes called a ‘family trust’), the trustee has the power to determine which beneficiaries receive the property or assets from the trust and how much each is to receive. The trustee’s power only extends to nominated beneficiaries in the trust.

What happens when a grantor names multiple trustees?

When a grantor names multiple trustees, or co-trustees, they are responsible for co-managing the trust’s assets. It is important to know what and how much power each co-trustee has over the management of the trust’s assets.

Can a trust have more than one trustee?

However, there is no requirement for a trust to have only one trustee. When a grantor names multiple trustees, or co-trustees, they are responsible for co-managing the trust’s assets.