Asset protection

Assets in a trust are protected by the terms of the trust (trust deed) and the state or territory trust law. 

A trust can pay:

  • wages to employees and/or the trustee
  • a share of trust profits to beneficiaries.

Generally, the rule is beneficiaries are not liable for the debts of the trust. The trustee is liable for the debts and they can use the trust’s assets to pay those debts.

Starting a small business

Steps Progress

Is my hobby a business?

9 mins

Business structures overview

5 mins

Business registrations

5 mins

Sole trader structure

7 mins

Partnership structure

10 mins

Company structure

13 mins

Trust structure

7 mins

Small business support

10 mins

Related courses

1 mins

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