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For Trust Company Compliance

Documents For Trust Company

Compliance

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Mandatory Compliances for Trust Company


A Trust Company doesn’t require filing any Annual Compliance with the ROC


About Trust Company Compliance


Any Trust Company can be deemed as a legal body that acts as an agent, fiduciary, and trustee on the behalf of business/person meant for the purpose of management, administration, as well as eventual transfer for the assets to beneficial party. The trust companies are non-commercial banks that administer the financial assets on another’s behalf.

  • Basic Package
  • 35499 __
  • Bookkeeping+ financial statement preparation+ annual report / director’s report / board resolution preparation+ FCRA Registration and filing+ income tax return filing+ statutory audit+ 1 year dedicated compliance manager support (for a company with a turnover of less than Rs.50 lakhs per annum).
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  • Standard Package
  • 45499 __
  • Bookkeeping+ financial statement preparation+ annual report / director’s report / board resolution preparation+ FCRA Registration and filing+ income tax return filing+ statutory audit+ 1 year dedicated compliance manager support (for a company with a turnover of less than Rs.100 lakhs per annum).
  • Get Started
  • Premium Package
  • 65449 __
  • Bookkeeping+ financial statement preparation+ annual report / director’s report / board resolution preparation+ FCRA Registration and filing + income tax return filing+ statutory audit+ 1 year dedicated compliance manager support (for a company with a turnover of less than Rs.200 lakhs per annum).
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Frequently Asked Questions
What is a Discretionary Trust?

A trust is a relationship between a person or company, (the trustee) that holds legal title to property for the benefit of others (the beneficiaries). A discretionary trust is whereby the trustee can exercise their discretion as to which beneficiaries receive a distribution of income from the trust property. Beneficiaries can receive distributions of income or capital from the trust.

Who are the Key Players in a Trust?

Trustee– The trustee is who you trust to own all of your property legally and could be yourself or the company you act as a director for. You may want to retain the responsibility at arms length and instead, appoint someone you trust such as your spouse, close friend, family member, or a professional.

Importantly, acting as a trustee can expose you to significant risks. Trustees must always act in the trust’s best interests. They’re unable to conduct any act which may further their interests ahead of the trust. For example, a trustee cannot sell their property to a trust. Another clear breach would be where the trustee uses the trust to purchase property for above market value. Even if the trustee buys the property at a fair market value, they may still have breached their duty if they prioritised their investment over an available and more suitable option.

This role attracts a significant amount of control of the trust property so ensure that the trustee will represent the best interests of the trust property.

Appointer– If the trustee dies, annoys you, or is no longer able to act as trustee, the appointer is the person that provides a replacement. They’re also responsible for determining whether the trustee gets paid for their assistance running the trust.

Settlor– A settlor is a person that puts the first property into the trust (known as settlement/gift and usually for a nominal sum of $10). They need to be unrelated to the trust and not to receive any benefit from it. Typically, you could use a lawyer, accountant or friend.

Is the Trustee Subject to any Rules or Regulations?

In short, yes! The trust deed sets out the scope of a trustee’s powers. So, if you have specific requirements, consider drafting a deed to limit/constrain/manage their powers. Trustees are also subject to a variety of other requirements imposed by both common law and statute.

Importantly, a trustee has a fiduciary relationship with the beneficiaries. This relationship exists because of the trust placed in the trustee. To protect those in a vulnerable position (those putting trust in the trustee) the law recognises this special relationship and places duties on the trustee to ensure they act in good faith and the best interests of the trust.

What’s the Difference Between a Trust With a Corporate Trustee and Without a Corporate Trustee?

A trust without a corporate trustee will have a person that legally owns the property on trust for the beneficiaries. A corporate trustee is a company that is established to hold legal title to the property in trust for the beneficiaries.

What are the Benefits of the Trustee Exercising Discretion to Distribute Income?

Beneficiaries have no claim to any portion of the trust income and only receive a benefit when the trustee exercises their discretion and distributes the income. The effect of this is that the status as a beneficiary does not result in a tangible gain or proprietary interest in the trust property. As there is no claim to the property, you’re not subject to tax implications if you don’t receive a distribution.

Disadvantages can include that the trustee can stop distributions to a particular beneficiary at any time, and a beneficiary can do little to change this arrangement. This can present a problem should a dispute arise with the trustee (for example, a family fall out) and is a key reason why you should exercise great care when selecting a trustee.

What’s the Difference Between a Family Trust and Discretionary Trust? Do all Beneficiaries Have to be From the Same Family?

A family trust and discretionary trust are essentially the same. The trustee maintains the discretion to distribute income as they see fit. It’s more likely, however, that the beneficiaries are all members of the same family. As a family trust is simply a commonly used term, rather than a requirement that the beneficiaries all be from the same family, there’s no restriction on you listing people outside your family as a beneficiary.

Who Owns the Trust Property?

Unlike a person or a company, a trust is not a legal entity that can own property because a ‘trust’ is just a relationship between the legal owner (the trustee) and the beneficial owners (the beneficiaries). As such, documents including a house title, share certificate, or members’ register, will list the trustee as the owner of the property. For example, if I were the trustee of a trust and purchased a house, the owner would be listed as “Thomas Richman as trustee for the XYZ Family Trust”. If the trust had a corporate trustee, then the owner would be listed as “ABC Pty Ltd as trustee for the XYZ Family Trust”.

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