What is a discretionary trust deed?
It is a legal document that establishes a trust in which the trustees have discretion over how and when to distribute income or assets among a class of beneficiaries.
Estate & Legacy Planning
Discretionary Trust Deed
Generate a discretionary trust deed giving trustees flexibility over distributions, reflecting the tax treatment of Australian discretionary trusts under general trust law and the tax law.
- Create a discretionary trust deed for family assets
Create a discretionary trust deed establishing [Trust Name], with [Settlor Name] as settlor and [Trustee Name(s)] as trustees, for the benefit of [Beneficiary Names], covering assets including [Key Assets].
- Create a discretionary trust deed for business succession planning
Create a discretionary trust deed establishing [Trust Name], holding shares in [Business Name] on behalf of [Beneficiary Names], with [Trustee Name(s)] as trustees.
- Create a discretionary trust deed including an appointor role
Create a discretionary trust deed establishing [Trust Name], naming [Appointor Name] as appointor with the power to remove and replace trustees, and [Trustee Name(s)] as trustees for [Beneficiary Names].
Discretionary Trust Deed Generator (Australia)
A discretionary trust deed is a legal document that establishes a trust in which the trustees have discretion over how and when to distribute income or assets among a class of beneficiaries. This free Australian discretionary trust deed generator produces deeds for family asset holding, business succession planning, and structures that include an appointor role, reflecting the widespread use of discretionary, or family, trusts in Australia for asset protection and the streaming of trust income to beneficiaries on lower marginal tax rates. It is designed for Australian families and business owners setting up a trust structure with the help of their accountant or lawyer. The generator lets you name the settlor, trustees, beneficiaries, and an optional appointor, and describe the assets to be held. Use it as a starting point before finalising the structure with tax and legal advice, since stamp duty and tax consequences vary by state and by how the trust is used.
Frequently asked questions
How is a discretionary trust different from a fixed trust?
In a fixed trust, each beneficiary's entitlement is set in advance. In a discretionary trust, the trustees decide who receives what and when, within the terms of the deed.
Who are the key parties in an Australian discretionary trust deed?
The settlor establishes the trust, the trustees manage it, and the beneficiaries are the people who may benefit, often alongside an appointor who holds the power to remove and replace trustees.
Why do Australian families and businesses use discretionary trusts?
They are commonly used for asset protection and for streaming trust income to beneficiaries in a tax-effective way, since trustees can adapt distributions to changing family or business circumstances each year.
Does a discretionary trust deed attract stamp duty in Australia?
Establishing a trust can attract stamp duty in some Australian states and territories, and the rate and rules differ by jurisdiction, so this should be checked before executing the deed.
Does a discretionary trust deed need to be reviewed by a lawyer or accountant?
Yes, given the significant legal, tax, and family implications, independent legal and tax advice is strongly recommended before finalising a trust deed.