How to open a trust account in Australia: The complete guide

Are you looking to save and protect money for a specific purpose or individual? A trust account may be the answer. Trust accounts can help safeguard financials, provide detailed documentation of all monetary transactions, and assist in meeting personal or business objectives. If you’re based in Australia and want to open a trust account, this guide will be your go-to source for information on setting up your own.

In this article, we’ll provide an overview of how a trust works and step-by-step instructions on how to set one up online and offline in Australia. So, whether you’re creating an education foundation for future generations or protecting assets from unexpected expenses, keep reading to get started with opening a trust account today.

trust account

What is a trust account?

A trust account is a legal arrangement in which funds are held for the benefit of another person. The trustee is responsible for managing and maintaining the assets or resources held within the trust. The assets can include real estate, bank accounts and investments but may vary depending on the purpose of the trust account. Generally, any income generated by these assets is directed back into the trust to be managed according to legal instructions.

Depending on the unique requirements of each case, more than one trustee may be appointed to handle a trust account. Each appointed trustee must follow strict fiduciary duty regulations when managing the funds held within a trust account.

What type of trust account do I need?

The type of trust account you open will depend on your particular requirements. Generally, there are three types of trusts which you can open in Australia. These are:

Fixed trust: A fixed trust is established for a specific purpose or beneficiary and will have an end date when the assets are distributed to the beneficiaries.

Unit trust: A unit trust is created when multiple beneficiaries are involved and can have an open or closed duration.

Discretionary trust: This type allows the trustee to decide how funds are distributed amongst the various beneficiaries.

It’s important to consider all aspects of your circumstances before deciding which type of trust is the most suitable for your needs.

How to open a trust account in Australia: Online vs Offline

If you’re based in Australia and looking to open a trust account, the first step is to decide how you would like to open it. You can open a trust account either online or offline.

Online

To open a trust account online, you will need access to a computer with an internet connection and be able to provide personal details such as your full name and address. You will also need to provide copies of documents that prove your identity, such as a passport or driver’s license. Once you have completed the online form, you must read and agree to the trust deed before submitting it for approval.

Offline

Alternatively, you prefer to open your trust account offline. In that case, you will need to make an appointment with a lawyer or financial planner who can advise and assist in setting up the trust. You will need to provide documents and personal information as mentioned above and ensure that all parties involved in the trust are present at the meeting. Once you have agreed on the terms of the trust and the deed has been signed, you will need to ensure that the trust is registered with the relevant authorities.

What documents do I need to open a trust account?

Once you have decided which type of trust account is most suitable for your requirements, the next step will be gathering all the necessary documents. These documents must meet all legal requirements for the trust to be registered with the Australian Securities and Investments Commission (ASIC).

The essential documents needed are:

  • A trust deed
  • Appropriate identification documents for all parties involved in the trust
  • Proof of address for all involved parties
  • Trustee declaration form
  • Bank statements
  • Investment information (if applying to invest funds)

Final Steps: Setting up a trustee and managing your trust

Once you have gathered all the necessary documents, you must set up a trustee. The trustee is responsible for managing the account and must ensure that all funds are allocated following the terms of the trust deed.

You should also ensure that all parties in the trust understand their roles and responsibilities as set out in the trust deed. As the trustee, you will also need to ensure that all fiduciary duties are complied with and that any investments made follow applicable laws and regulations.

You should keep detailed records of all transactions, ensuring greater transparency and accountability. Finally, it’s essential to review your trust account regularly to ensure that it is still meeting your needs and that all the terms of the trust deed are being adhered to.

Conclusion

Now you know how to open a trust account in Australia, you can be confident that any investments made are secure and compliant with the relevant regulatory bodies. You can also rest assured knowing that you have taken the necessary steps to protect your investments and assets for the future.

Internet practitioner. Twitter expert. Analyst. Communicator. Thinker. Coffee advocate.
Spent a year testing the market for sock monkeys in Naples, FL. My current pet project is donating robotic shrimp in Hanford, CA. Spent several months getting my feet wet with weed whackers worldwide. Spent 2001-2006 training shaving cream in Hanford, CA. Crossed the country lecturing about bathtub gin in West Palm Beach, FL. Spent 2001-2007 implementing licorice with no outside help.

Forgot Password