Setting Up a Family Trust in Australia: Benefits, Structure & Compliance A family trust can provide asset protection, tax planning benefits and flexible distribution of income to beneficiaries. Here’s a five-step guide to establish and maintain your trust under Australian law. 1. Choose the Right Trust Type Common options include a discretionary (family) trust —where the trustee decides distributions each year—and a unit trust , which fixes beneficiary entitlements by unit holdings. Consider your family’s goals, asset base and tax position. 2. Draft the Trust Deed Engage a specialist lawyer to prepare the trust deed. It must specify: Name of the trust Trustee’s powers and duties Beneficiary classes (family members, children’s trusts) Trust duration (up to 80 years in most states) 3. Appoint Trustee(s) & Beneficiaries The trustee (individual or corporate) holds legal title and manages trust assets on behalf of beneficiaries. Choose someone trustworthy and...