Understanding Trusts in Western Australia: A Guide for Individuals and Business Owners

July 8, 2025

What Are Trusts?


A Trust is a legal arrangement where a person or entity (the Trustee) holds and manages assets for the benefit of others (the Beneficiaries). The Trustee is responsible for administering the Trust in accordance with its terms and in the best interests of the Beneficiaries. Trusts are commonly used for asset protection, estate planning, and business structuring in Australia.


Key Parties in a Trust


  • Settlor: the person who creates the Trust and contributes the initial assets.
  • Trustee: the individual or company responsible for managing the Trust assets.
  • Beneficiaries: the people or entities who benefit from the Trust.
  • Appointor: the person who has the power to appoint or remove Trustees.


How Can Trusts Benefit Individuals and Business Owners?


Trusts offer a range of advantages for both personal and business purposes:


1. Asset Protection

Trusts can help shield assets from creditors, lawsuits, or family disputes, as the assets are legally owned by the Trustee, not the individual.


2. Estate Planning and Succession

Trusts allow for the smooth transfer of wealth to future generations, helping to provide for minor or vulnerable Beneficiaries.


3. Tax Planning

Trusts can offer tax flexibility. Income generated by Trust assets can be distributed among Beneficiaries, potentially reducing the overall tax liability.


4. Business Structuring

Trusts are often used by business owners to separate business assets from personal assets, manage risk, and facilitate succession planning.


5. Privacy

Trust arrangements are generally private, unlike Wills which become public during probate.


How Are Trusts Created in Australia?


Establishing a Trust in Australia involves several key steps:


1. Decide on the Type of Trust

Common types include:
Discretionary Trust: Trustee decides how income/capital is distributed among Beneficiaries. Common for family Trusts.

Unit Trust: Beneficiaries hold fixed units, similar to shareholders in a company. Often used for business or investment purposes.

Testamentary Trust: created by a Will, comes into effect upon the Will-maker’s death.


2. Prepare a Trust Deed

A Trust deed is a legal document that sets out the terms and conditions of the Trust, including the powers of the Trustee and the rights of the Beneficiaries.


3. Settle the Trust

The Settlor provides the initial asset (often a nominal sum) to establish the Trust.


4. Appoint Trustees and Beneficiaries

The Trust deed will name the Trustees and Beneficiaries. The Trustee must accept their role and responsibilities.


5. Stamp Duty and Registration

In Western Australia, unlike some other Australian states, stamp duty is not payable on the mere execution of a Trust deed and it does not need to be stamped. Registration with the Australian Taxation Office (ATO) will be necessary if the Trust will have a Tax File Number or Australian Business Number.


6. Ongoing Compliance

Trustees must comply with the terms of the Trust deed and relevant laws, including annual reporting and tax obligations.


If you are considering establishing a Trust, Crabtree Legal can provide tailored advice to ensure your Trust is structured to meet your personal or business needs.

March 20, 2026
A new year is the perfect time to revisit an important question: is your Will still up to date? Many people make a Will once and then leave it untouched for years. But life rarely stays still. Relationships change, children are born, assets are bought and sold, businesses evolve, and family circumstances shift. A Will that once reflected your wishes may no longer do so. For that reason, reviewing your Will regularly is one of the simplest ways to protect the people and assets that matter most. Why people delay updating their Will It is easy to put off Estate Planning. Some people assume their Will is “good enough” because nothing dramatic has happened. Others feel uncomfortable thinking about what happens after they are gone. In practice, the most common reason Wills become outdated is not neglect in a dramatic sense, but everyday change. You may have: Married or separated. Had children or grandchildren. Bought property. Started or sold a business. Gained or lost significant assets. Named an Executor who is no longer suitable or available. If any of these apply, your current Will may need review. What can happen if a Will is outdated An outdated Will can create confusion, delay, and conflict at exactly the moment your family is already dealing with loss. It may also fail to reflect your real intentions. For example, assets may pass to someone you no longer intended to benefit, or a chosen Executor may no longer be the right person to manage the Estate. In some cases, the wording of an old Will can even create disputes that could have been avoided with a simple update. When to review your Will A good rule of thumb is to review your Will after any major life event, and otherwise every few years. You should consider an update if you have experienced: A marriage, divorce, or de facto relationship change. The birth or adoption of children. A death in the family. A major change in assets or liabilities. A move interstate or overseas. A change in your wishes about guardianship for your children, gifts, or Executors. Even if nothing major has changed, a periodic review helps ensure your instructions remain clear and legally effective. A simple process can prevent future problems Updating a Will does not have to be complicated. In many cases, a short review with a lawyer is enough to confirm whether the existing document still works or whether a new will is needed. A proper review can also identify related issues, including: Powers of attorney. Appointment of guardians. Superannuation nominations. Business succession arrangements. Asset ownership structures. These matters often work together, so an estate plan should be considered as a whole rather than as a single document. The takeaway The start of a new year is a useful reminder to get organised, and your Will should be part of that process. If your circumstances have changed, or if it has been several years since your last review, now is a sensible time to take another look. A current, well-drafted Will can save your family stress later and help ensure your wishes are carried out clearly.  Contact Crabtree Legal today for practical advice on updating your estate plan and protecting the people you care about most.
December 23, 2025
As we wrap up the year, we want to extend our heartfelt thanks to everyone who has supported Crabtree Legal since we commenced operations in May 2025. It’s been a privilege to serve our clients, collaborate with our partners, and begin building a legal practice grounded in integrity and community. We wish you and your loved ones a joyful Christmas filled with rest, connection, and gratitude. May the new year ahead be blessed with peace, purpose, and new opportunities. Thank you for being part of our journey. We look forward to supporting you in 2026. Warm regards, Jonathan Crabtree & the Crabtree Legal team
November 9, 2025
At Crabtree Legal, we understand that protecting your children’s inheritance from potential relationship breakdowns is a crucial concern for many families. The landmark Family Court of Australia decision in Bernard and Bernard [2019] FamCA 421 confirmed that testamentary trust Wills can be an effective tool in safeguarding a beneficiary’s inheritance from being divided upon divorce. Background of the Case In Bernard v Bernard, the husband’s late father created two discretionary testamentary trusts through his Will — one for his son and one for his daughter. The trusts operated as “mirror trusts”: each sibling was the trustee of the other’s trust but had no control over their own trust. The husband was the primary beneficiary of his trust, but the assets were legally owned and controlled by his sister as trustee. When the husband and wife later separated and divorced, the wife sought to have the husband’s inheritance held in the testamentary trust included in the matrimonial property pool for division. However, the husband argued that since he did not legally own or control the trust assets, and his interest was solely as a beneficiary dependent on the trustee’s discretion, the inheritance should be excluded from the property pool. Court’s Decision and Key Findings The Family Court ruled in favor of the husband, finding that the assets in the testamentary trust were not part of the matrimonial pool. The court’s key reasoning was that: The husband was not the settlor of the trust—the deceased father was. The husband had no legal ownership or control over the trust assets. The trustee (the husband’s sister) had complete discretion over income and capital distributions. The husband’s interest was discretionary and not guaranteed, meaning he could not compel distributions. The trust assets were inherited and not acquired during the marriage. This decision confirmed that a properly structured testamentary trust can protect a beneficiary’s inheritance from being divided upon divorce by separating legal ownership and control from mere beneficial interest. Why This Matters for Your Estate Planning Bernard v Bernard highlights how testamentary trust Wills can be used to safeguard your children’s inheritance from future relationship breakdowns, ensuring that inherited assets remain protected within the family and are not treated as divisible property in the event of a divorce. At Crabtree Legal, we specialise in Wills incorporating testamentary trusts and can provide tailored advice and drafting services to help you protect your family’s wealth across generations. Contact Crabtree Legal Today If you want to ensure your children’s inheritance is protected from a future divorce or relationship breakdown, contact Crabtree Legal today. We will guide you through establishing testamentary trust Wills that provide peace of mind and strong asset protection tailored to your family’s needs.