Family Trusts and Your Investment Strategy

Family Trusts and Your Investment Strategy

When it comes to shaping your investment strategy as a high-net-worth individual, exploring various options is essential. One avenue that some investors consider is utilising family trusts as it may offer certain tax benefits when used correctly. 

If you are considering this as an option for your investment strategy, it is essential to discuss the benefits of a family trust in Australia with your accountant or financial advisor in order to fully understand the implications.

The Basics of Family Trusts

Family trusts, also known as discretionary trusts, can be complex legal structures designed to distribute income to family members as the beneficiaries. In this way, they differ from other types of trusts and may offer benefits to those in high tax brackets.

In recent years, the Australian Tax Office has been cracking down on family trust fund misuse, so it is important to ensure that all beneficiary distributions are done correctly.

It is crucial to understand that each individual’s circumstances are unique, and the appropriateness of setting up a family trust should be assessed by a qualified accountant or financial advisor.

Family Trusts and Real Estate Investments

In the realm of real estate, including investments in mortgage funds, family investment trusts can be utilised as a structure to hold and manage assets. 

There may be benefits to investing through a family trust when it comes to owning real estate or having mortgage fund investments, such as potential tax advantages and flexibility in distributing income among family members.

It is important to note that taxation laws and regulations surrounding family trusts and their impact on mortgage investments can be intricate and subject to change, so seeking professional advice from your accountant or financial planner is crucial.

Investing Through Family Trusts vs Individual Investment

Investing through a family trust presents some unique differences compared to individual investments or other investment vehicles. As any income generated through the investment is divided amongst the trust beneficiaries, there may be tax benefits and advantages to having a distinct ownership structure when assets are held within a family trust.


However, it is vital to stress that the suitability and implications of family trust investments can vary depending on individual circumstances and applicable tax laws.

Is Family Trust Real Estate Investing Worth It?

Family trusts are one option that high-net-worth individuals consider as part of their real estate investment strategy. However, this approach is not for everyone. While family trusts may offer certain benefits and possibilities, it is essential to approach family trusts with caution and seek personalised advice from your accountant or financial advisor.

Whether you are looking to invest in mortgage funds through a family trust or individually, the experts at Arthurmac can help find the right investment for your portfolio. Get in touch with the Arthurmac team on 1300 417 690 or complete our online contact form to hear back soon.


Disclaimer: Please be advised that it is highly recommended to conduct thorough research and seek guidance from a financial expert prior to making any investment decisions. It is further recommended to regularly review your investment portfolio and make necessary adjustments to ensure it aligns with your financial goals.

Stuart Styles

Managing Director Stuart has 16 years of experience as a Financial Services professional having worked previously in asset finance & management roles within the Motor Industry.