Establishing a Family Trust
New Leaf Advisory recommends the establishment of a family trust principally for one of the following reasons:
Asset protection – protecting assets from creditors of the trustee and beneficiaries.
Tax Planning – achieving the best possible tax outcomes.
Estate Planning – achieving an intergenerational change of control of assets.
While there are significant advantages to establishing a trust, it’s equally important that the structure is set up and operated correctly. If not, the trust’s assets could become exposed to personal creditor claims, or you could end up paying more tax than necessary, among other potential risks.
At New Leaf Advisory, we’ll guide you through what can be a complex and technical process, making it clear and straightforward, particularly if you’re establishing a trust for the first time.
The Process
The First Steps
The first steps we will work with you on are identifying:
The Name of the Trust
There are no technical requirements when it comes to choosing a trust name, it’s purely a matter of personal preference.
That said, because trusts are long-term legal structures, it’s worth choosing a name with some thought and meaning, as it may be referenced regularly throughout your lifetime.
The Settlor
The Settlor should be an independent person or entity and cannot be:
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a beneficiary of the trust;
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the Trustee; or
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the Appointor or Alternate Appointor.
This role is typically filled by the solicitor involved in establishing the trust or the accountant assisting with the process. At New Leaf Advisory, we generally appoint the solicitor by default when setting up new trust entities.
The Role of the Appointor/s
The Appointor is the person or entity who effectively controls the trust. They have the power to appoint and remove the Trustee, which means they indirectly control who makes decisions for the trust. The Trust Deed sets out that the Appointor can remove a Trustee and appoint a new one, and if the Appointor passes away, this power may be exercised by their personal representatives.
The Appointor is one of the most important roles to consider when establishing a trust. While a trust cannot be owned in the traditional sense, it is effectively controlled by the Appointor, making this decision critical for the long-term operation of the trust.
The Beneficiaries
Careful consideration should be given to who you wish to receive benefits from the trust.
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Primary Beneficiaries: These are the individuals you specifically name in the Trust Deed as the main recipients of trust benefits.
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Secondary Beneficiaries: Typically include spouses, parents, children, grandchildren, nephews, nieces, and other close family members.
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Tertiary Beneficiaries: May include related companies, trusts, or other entities connected to the family or group.
Structuring your beneficiaries thoughtfully ensures the trust operates as intended and provides flexibility for future needs.
Establishment Services
New Leaf Advisory conducts the following services entailed in establishment of a trust:
ASIC registration (applicable for corporate trustees only);
Legal establishment of the Trust Deed;
Preparation/checking of corporate (if applicable) & trust documents;
Ancillary/incidental services relating to entity setup including advice regarding specific roles;
Completion of applications for a Tax File Number & Australian Business Number;
Conduct of a meeting to discuss issues incidental to the sign off on the documents;
Hold a copy of your corporate & trust records as a backup in the event they are misplaced.
There are other aspects of establishing a trust included in our service, however the above outlines the key tasks entailed in completing the process.
Annual Compliance
Once the Trust is established, there are ongoing compliance requirements associated to maintaining accurate records for the Australian Tax Office (ATO) and other stakeholders. By appointing New Leaf Advisory as your Tax Agent, you will facilitate us with access to your records to play an oversight role in managing these responsibilities. Common examples include (but are not limited to):
Lodging a tax return each financial year;
Preparing financial statements each financial year;
Ensuring your details are accurate (i.e. address, contact details).
The ongoing services start with basic compliance and develop into more complex advisory matters which may apply to the trust activity over time.
Associated costs
The typical cost to establish a Family Trust with a corporate trustee is approximately $2,750 (ex GST).
In addition to the initial setup, there are a few ongoing costs to be aware of:
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ASIC Annual Fee:
The corporate trustee must remain registered with ASIC, which imposes an annual filing fee. As of 1 July 2025, this fee is $329 and is subject to small annual increases. -
Ongoing Compliance Costs:
Each year, the trust will need to prepare a financial report and income tax return to meet its compliance obligations.
The cost for preparing these documents generally starts from $750 – $1,250 (ex GST) per annum, depending on complexity and time required.
At New Leaf Advisory, we guide you through each stage, from establishing the trust structure to managing your ongoing reporting and ensuring your trust remains compliant and aligned with your family’s long-term goals.
Answers To Your Top 10 Discretionary Trust Questions
While we’ll guide and educate you on the nature and operation of your discretionary trust, it’s important that you also understand the Trustee’s powers. To assist, we recommend reviewing the Top 10 Discretionary Trust Questions and Answers below.
We work closely with ACIS, who have assisted us in establishing numerous trusts over many years. Through this partnership, we’ve developed a deep understanding of their trust deeds and have full confidence in the quality of their documentation and service.
With their consent and our endorsement, please refer to the following link to review “Answers to Your Top 10 Discretionary Trust Questions.”
