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James Millar
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sonoflaw, post: 156961 wrote:
Hi,

I was hoping to get some assistance with and understanding of how I can use my Family Trust.

I have some trailing commission that I was thinking of running through my Family Trust. The trust was originally in place to hold the shares of a company I owned and disbursement of income. It has pretty much been dormant for some time.

Effectively I want a mechanism to receive the commissions then disburse the funds. Hoping someone may be able to explain the pros and cons of this approach over any other.

Thanks.

The problem is that if you have an existing trailing income stream, transferring it to a trust would probably trigger a capital gains tax event. The “right” to an income stream is a CGT asset.

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