Restructuring Discretionary Trusts: Key Facts


A discretionary trust does not allow for a fixed interest or a fixed percentage ownership within the trust itself. They are very common, especially within family groups running a business; this structure is quite normal from that perspective.


So, when there is a need for more than one family group to own that entity, we may need to consider one of two options. One option is a unit trust, where a fixed ownership percentage can be established. The other option is a company, where shares can be allocated to each family, or if there are multiple investors, or companies can have fixed entitlements in shareholding.


This is a fundamental requirement when considering an external investor and a very common reason for wanting to restructure.

If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions. 

From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax. 

Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us. 

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