Why people put domains in "Family Trusts"

[James]

Hi all,

Ive been seeing a few good domains lately on the who is data they have "(Insert name) Family Trust", or they have "(insert name) Trust"

These domains are running business on them, my question is what is the benefit of running a domain on a family trust?

Is their a tax benefit? Or is it just asset management.

I don't want to name domains =)

Just curious =)

 

[justme]

Define tax benefit.

 

[soj]

Just the way the accountant has set up the company structure, supposedly provides greater asset protection.

 

[Shane]

As the others said, tax advantages as well as asset protection.

A family trust can work particularly well if you have children and a low-income spouse, as the income from the trust can be distributed amongst the beneficiaries in a way that takes advantage of each persons tax status. The trust itself doesn't pay any tax on distributed income.

 

[James]

Yeah its funny because I did a who is look up on a decent size .au SEO company and I see they are running it in a Family Trust via the business?

But thank you for the information ONE.

 

[snoopy]

Yeah its funny because I did a who is look up on a decent size .au SEO company and I see they are running it in a Family Trust via the business?

But thank you for the information ONE.

Most larger businesses are run through trusts, the reason why it seems more obvious with .au whois is because often they list entity names relating to to the ABN and the like, whereas normally with a business all you would see would be the trading name (eg a Pty Ltd company)