Family Trust Deeds in Australia: What They Are and When You Need One
12 October 2026 · 5 min read
A family trust — usually a discretionary trust — is a common structure for holding investments or running a business in Australia. The trust deed is the legal document that creates the trust and sets the rules the trustee must follow.
Key roles in a family trust
- Settlor — the person who establishes the trust with a nominal amount
- Trustee — an individual or company that holds the assets and makes decisions
- Appointor — the person who can remove and replace the trustee (often the real control of the trust)
- Beneficiaries — the people or entities who may receive income or capital
Why people use family trusts
Families commonly use discretionary trusts for flexibility in distributing income, asset protection and succession planning. Whether a trust suits you depends on your circumstances, so it's important to get legal and tax advice before setting one up.
What the deed should cover
A well-drafted deed clearly deals with trustee powers, how distributions are made, who the beneficiaries are, how control passes on death or incapacity, and how the deed can be varied. Poorly drafted deeds can cause tax problems and family disputes years later.
Practical steps after the deed is signed
Once established, the trust usually needs a tax file number, possibly an ABN, and a bank account in the trustee's name. Stamp duty treatment of trust deeds differs between states, so check the requirements where you are.
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Set up your trust deedFrequently asked questions
Do I need a corporate trustee?
Not always, but many people choose a company as trustee for clearer separation of assets and easier succession. Your lawyer can explain the trade-offs.
Can a family trust protect assets?
A trust can provide some protection, but it is not absolute. The outcome depends on how the trust is structured and controlled.
Do I also need an accountant?
Yes, it's wise to speak with an accountant about the tax side. Our lawyers prepare the deed and explain the legal structure.
This article is general information only and is not legal advice. Laws vary between states and territories and change over time — speak with a lawyer about your circumstances.