Document Fact Finder

Document Fact Finder
Document Fact Finder
Child Support (Maintenance) Trust
This document fact finder sets outthe information needed to establish a Moores Deed for a child support or child maintenance trust.
Child support trusts enable obligated parents, if they can meet strict taxation criteria including the breakdown of the relationship between the child’s parents or guardians, to meet all or part of their child support payments out of income from assets transferred to the trust(s). If the trust(s) meets all the criteria, the income is taxed in the hands of the child at excepted, concessional marginal income tax rates, rather than as additional income of the obligated parent and taxed at the obligated parent’s often high marginal income tax rate. A separate trust will be established within this Trust Deed for each child.
For background reading, see under Wealth Management at
Please complete if a particular person at Moores needs to receive this document fact finder (otherwise leave blank) / Attention:

CONTACT DETAILS

/ Name and Address of Firm or Person to be invoiced
Contact person
Telephone
Email
Referring advisor (if not set out above)
Information for Preparation of Deed and Ancillary Documents
In addition to the information set out below, please also provide either:

a copy of the child support assessment or order that the obligated parent has been given or has agreed (preferably with wording that says that the obligated parent “will pay or cause to be paid….”); or
a summary of the basis of the obligated parent’s child support obligations have been determined.

Information for Preparation of Deed
1. Starting Date (if known – State duty is payable on the Deed within a set time, eg 1 month)
2. Name and Address of the settlor who is formally establishing the trust(must not be a possible beneficiary of the trust and should live in the State or Territory in which the trust is to operate)
3. Name(s) of the Initial Trustee(s) (eg the obligated parent, the person funding the trust or a company. Can be a company or one or more individual/s)
Trustee’s Registered Office or Address
Trustee’s ACN (if company)
Company seal required for signing? / Yes/No / No of Directors to sign Deed, ie 1 or 2
4. Name of the Trust(s) – one trust will be established for each child
5. Settled Sum (paid by the settlor to the trustee prior to loans or further gifts being made to the trust)
6. Name(s) and Address(es) of the Principal
Beneficiary/ies (ie the child or children under 18 that are the subject of the obligated parent’s child support obligations– note that eventually these children must receive (and benefit from) their trust capital)
7. Time When Each Principal Beneficiary Can Claim Their Trust Capital (usually the later of both the obligated parent’s death and when the principal beneficiary reaches XX years, e.g. 18, 21, 25, 30) /
years
8. Appointors (have the power to “hire and fire” the trustee and thus indirectly control the trust)
Name and Address of the Initial Appointor (ie theperson who can change the trustee – usually the obligated parent is both the trustee & the initial appointor)
Subsequent Appointor(s) (to take over when the initial appointor dies before the principal beneficiaries have attained the required age / Note: Leave blank if the executor of the initial appointor is to be the subsequent appointor
How is Control to be Shared between 2 or more specified Subsequent Appointors (usually equally)
9. Maximum Duration (eg 80 years - no limit in SA) (for capital reserved trusts only usually the death of the last to die of the primary beneficiaries)
10. Which State or Territory law is toapply to trust / ACT \ NSW \ NT \ Qld \ SA \ Tas \ Vic \ WA
11. Name & Address of the Other Parent or guardian of the principal beneficiaries
12. Names and Addresses of any Excluded Beneficiariesfor the post child support obligations stage 2 of the trust(s) – eg relatives that are means testedpensioners (the trustee will also be able to permanently exclude beneficiaries if the need arises)
13. Assets to be Acquired by the Trustee
(if known – to satisfy the excepted, concessional tax requirements the trust must be funded by a transfer of moneys to the trust)

the trust must be funded by a transfer of moneys to the trust);
those moneys must then be invested on “arm’s length” rates & conditions – assets can be acquired from the obligated parent or related entities, but only on those terms; and
the trustee must not carry on a business on behalf of the trust(s), but may invest in an entity carrying on a business. (State duty or capital gains tax may be payable when the trustee acquires investments.)

/ The successful establishment & the optimal use of a child support trust are dependent on close attention to these & other planning issues. It is recommended that advisors &/or clients consult with Moores on their specific circumstances before proceeding with the trust(s).
14. Please attach details of anySpecial Conditions, eg additional restrictions on the trustee (who normallyneeds the appointor’s consent for major decisions

15. Review of Estate Planning issuesas a consequence of the establishment of the trust:

To be undertaken by Moores To be undertaken elsewhere Not required

Pricing: Following receipt of the completed document fact finder, an agreed price will be determined before the trust deed and accompanying documentation are prepared or any specific advice is provided in relation to the trust. Payment is to be made prior to the preparation of the trust deed and accompanying documents.

Statement of Advice: This document is for Moores information gathering purposes only and should not be regarded as being comprehensive nor be relied on as (or in substitution for) legal, personal financial or other professional advice. See under Wealth Management at for the latest version of this and other Moores document fact finders.

November 2014

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