Can family trusts avoid the defacto death taxes such as Capital Gains Tax and Stamp Duty?
Family Trusts allow legal avoidance of defacto death taxes because case law has held that the rights of beneficiaries in Family Trusts don’t constitute an interest in your Will. Interestingly, the assets of a family trust do not form part of a deceased estate. A person could have millions in their Family Trust and yet die a pauper. The only exception to this is Loan Accounts. These are moneys that someone has loaned to the Family Trust. These balances belong to the person making the loan.
