Commencing a business as a trust

Before commencing business as a trust, a trust deed should be drafted by which the legal relationship of a trust is established over trust property in favour of beneficiaries.

Care should be taken when choosing a trustee to ensure that it has the legal capacity to hold property, namely that it is sui juris and not under a legal disability and is sufficiently skilled to understand the obligations and duties which follow from holding that role.

In a discretionary trust context, standard practice is to create a class of beneficiaries that is as wide as possible.

Consideration should be given to any required licences or registrations necessary to carry on a business in a trust structure, as well as registration of business names.

See Commencing a business as a trust.