From: Dale Gatherum-Goss
Hi
I was emailed off the forum to explain the differences between having a person as trustee and a company and why the difference adds another $1,000 to $1,400 to the establishment cost.
The difference is the level of protection that the choice of trustee provides.
An individual who acts as trustee has their personal assets at risk should something go wrong with the trust.
A company as trustee has no assets and can be sacked from the position of trustee. This means that your personal assets are not at risk.
Which way you go is a personal decision that each individual makes based on their own situation and their comfort with the risks involved.
The costs vary greatly from accountant to accountant and are usually made up of:
Trust at say $250 to $350
Stamp duty at $200 in Vic & NSW & ACT (nothing in QLD)
The balance belongs to the accountant for his/her time in co-ordinating it all and applying for a TFN & an ABN. Each accountant will charge a little differently depending upon how long they expect it to take, and, their normal hourly charge out fee.
When we add a company as trustee the accountant will pay between $950 and $1,100 for the company to be established on your behalf.
Again, the difference is the accountant's time.
I hope that this helps to clarify previous posts.
have fun
ale
Hi
I was emailed off the forum to explain the differences between having a person as trustee and a company and why the difference adds another $1,000 to $1,400 to the establishment cost.
The difference is the level of protection that the choice of trustee provides.
An individual who acts as trustee has their personal assets at risk should something go wrong with the trust.
A company as trustee has no assets and can be sacked from the position of trustee. This means that your personal assets are not at risk.
Which way you go is a personal decision that each individual makes based on their own situation and their comfort with the risks involved.
The costs vary greatly from accountant to accountant and are usually made up of:
Trust at say $250 to $350
Stamp duty at $200 in Vic & NSW & ACT (nothing in QLD)
The balance belongs to the accountant for his/her time in co-ordinating it all and applying for a TFN & an ABN. Each accountant will charge a little differently depending upon how long they expect it to take, and, their normal hourly charge out fee.
When we add a company as trustee the accountant will pay between $950 and $1,100 for the company to be established on your behalf.
Again, the difference is the accountant's time.
I hope that this helps to clarify previous posts.
have fun
ale
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