Family Trusts

Family Trusts

“All is fair in love, war and tax evasion.” – Tom Sharpe

Family trusts can be useful vehicles for saving tax provided you’re in a position to distribute income to the trust. A trust does not pay tax itself but merely acts as a conduit whereby income can be distributed to various beneficiaries of the trust who then pay tax on the income at their individual tax rates. They are particularly effective if the beneficiaries are over 18 but are on low incomes. They are of minimal value for younger beneficiaries as trust distributions to minors are taxed at punitive rates.

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