What is account in trust?

An account in trust, also known as a trust or ITF – “in trust for” – account, is a bank account that is registered by an individual but that is managed and monitored by a trustee, all to benefit a third party – the beneficiary.

How to open a trust account?

To open a trust account, one needs to select the trust type depending on its purpose, draft & file the documents, appoint a trustee, and then transfer assets to the trust. Grantors usually create trusts to protect their assets. It ensures that the assets under the trust are allocated and managed safely for the benefit of the eventual beneficiaries.

What is a trust & how does it work?

A trust can provide legal protection for your assets and make sure those assets are distributed according to your wishes. Once the trust has been established, an investment account can be created. Although the beneficiaries hold the right to benefit from the trust, they have no authority to act on behalf of the trust assets.

What are the different types of trust accounts in Australia?

There are many types of trust accounts, each of which has specific procedures, regulations and tax rules. Some of the most common types of trusts in Australia include living trusts, charitable remainder trusts, irrevocable trusts, special needs trusts, testamentary trusts, and revovable trusts.