Are trusts a smart move for managing investments?

Investing through a trust, including those with a corporate trustee, is a strategy that many Australian investors consider to enhance their financial planning, particularly when it comes to managing investments and tax liabilities effectively. Here are some insights based on your queries:

1. Usage of Trusts for Managing Investments:
   Trusts are commonly used for investment management because they offer significant flexibility in how income and capital gains are distributed among beneficiaries. This can be particularly advantageous for families like yours where there is a variance in income between partners. By distributing investment income to a lower-earning spouse or even potentially to children when they reach a suitable age, you can optimize the tax efficiency of your investments.

2. Genuine Benefits vs. Professional Recommendations:
   While it’s true that financial professionals, such as accountants and advisors, often recommend setting up trusts, it’s not just a service upsell. The benefits of a trust, especially in terms of tax planning and asset protection, are well-documented. Trusts can provide a legal structure that separates the control of an asset from the beneficiary, which can be crucial in scenarios like estate planning or legal disputes.

3. Choosing Between Standard Trust and Corporate Trustee:
   The choice between a standard trust and one with a corporate trustee often depends on the specific needs and complexity of your financial situation. A corporate trustee, generally a company, can offer added benefits such as perpetual succession (the trust can continue even if the trustee changes) and limited liability. However, these come at the cost of higher setup and ongoing maintenance fees. Investors who anticipate complex asset management needs or significant estate planning issues often lean towards a corporate trustee for these reasons.

In your case, considering you have a

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