Table of Contents
- Partnership of Discretionary Trusts Advantages
- Partnership of Discretionary Trusts Disadvantages
Partnership of Discretionary Trust as a Form of Ownership
When you contemplate the acquisition of an asset or starting a new business, the first question to consider is the form of ownership. When more than one family group is involved, the usual options are a company or unit trust.
To determine the suitability of a structure, you must bear in mind the particular advantages and disadvantages of the entity being considered. No one entity is suitable in all circumstances.
In recent times, some have suggested the use of a partnership of discretionary trusts.
The purpose of this article is to set out the key advantages and disadvantages of the Partnership of Discretionary Trusts structure which will identify key planning points for this structure.
The advantages and disadvantages of the Partnership of Discretionary Trusts are identified by comparing the features of a company or unit trust alternative.
Partnership of Discretionary Trusts Advantages
Maximum Net Asset Value Test
The small business capital gain tax concessions enable most privately owned businesses to sell their business without triggering this tax.