ATO Guide to Trusts

Overview

A trust is an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries. In Iegal terms, a trust is a relationship not a legal entity.

Trusts are widely used for investment and business purposes.

In simple terms, the owner of property such as money, real estate or shares creates a trust over the property by declaring it must be held for the benefit of a beneficiary. The owner (referred to as the settlor) appoints themselves or another party to be trustee. If the settlor is not the trustee, they transfer ownership of the property to the trustee