Recently a client contacted me, wanting to discuss ways to ensure that his company shares were protected from possible future creditors while reducing the tax payable on dividends.
I recommended a discretionary trust with terms that properly considered issues around appropriate trusteeship, and managing roles and succession in relation to control of trust assets.
Following my advice, the client was able to move their shareholding to a discretionary trust which will, in future, provide asset protection and tax effective distributions to family members.
