Tax Savings Strategy 208 | Trust Cloning Using the SBRR
Trust cloning involves setting up a trust (the ‘cloned trust’) with the same terms and beneficiaries of another trust (the ‘original trust’). Assets may then be transferred from the original trust to the cloned trust. The advantages of trust cloning are:
- Asset protection – allows a trust carrying on a business to separate the business assets (premises & equipment) from the business.
- Succession planning – to transfer control of assets to the next generation.
- The small business restructuring roll-over (SBRR) allows the ability to transfer assets to a cloned discretionary trust without any tax consequences (CGT or income tax).
Similar posts you may like
- New energy tax deduction incentive
On 30 April 2023, the Australian government announced it will provide businesses with an annual turnover of less than $50 million with an additional Read more
- 6,000 BC – Labour Obligation Tax
Under the Bala Tax, Mesopotamia taxed almost everything – livestock, grains, handicrafts, funerals, etc. The most burdensome tax though was the Labor Obligation. This Read more
- Tax support for serious hardship
The ATO might give you extra time to pay your tax or remove penalties if you experience financial difficulties. Further to these support measures, Read more
- Incorporated association
An incorporated association is a formal legal structure adopted by a broad range of non-profit organisations. Incorporated associations have the word 'incorporated' or the Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2