To Trust or Not to Trust?

We’ve all heard of Trusts but what are they in practice? Do we need them? Is there only one type of a so called Trust?

This post will look at Unit Trusts – only one of the variables within the Trusts’ umbrella.

A Unit Trust is a trust in which the trust property is divided into a number of defined shares – units. Beneficiaries subscribe to these units. A beneficiary is then entitled to the income and capital of the trust in proportion to the number of units they hold.

So why a Unit Trust? – Beneficiaries interests are clearly defined, can be easily transferred and can be reacquired by the trustee. Also important to note that trusts by nature, don’t have the highest form of regulations as company structures do. […]

Accountants … Someone Has To Be!

Mention that you are an accountant at a dinner party and most people are unsure how to respond. Typically, people want advice on reducing their income taxes or how to open an off-shore bank account where they can secretly squirrel away their savings. It can also be a total conversation killer.

After all, I can’t think of many action/adventure film where the main character is an accountant. However in a world where there are two certainties – death and taxes – it really isn’t such a strange career choice. Somebody has to count the beans!

The truth of the matter is, most people don’t like the thought of having to keep accurate records and who has the time to read through complicated tax laws written in a language that vaguely resembles English? Enter: Your friendly local accountant.

When Governor Phillip came to NSW in 1788, he brought with him a Royal instruction granting him authority to impose taxes as a means of raising money to the benefit of the colony. Well, it seems that it was a success
because we’ve been paying taxes in one form or another ever since. Taxes were levied to help build the first jail in Sydney. Then, as now, accountants worked on both sides of the fence. […]