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Child Maintenance Trust

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Hi all I have read a little bit about Child Maintenance Trusts on the net. I believe that part of Child Support Payments can be made into a created Child Maintenance Trust. Does anyone have experience with these and are the legal? Do both parties have to agree?

Any info would be appreciated.

Thank you
Main advantage is the money is not taxed.

Editor said
This response from Guest is hardly worthy of posting but it is posted to make a point that the answer is far more complex than stated "the money is not taxed".

There are other responses in the forums to this question that offer a much greater insight into trusts which are effectively companies these days and subject to much more scrutiny than in the "old days".

A trust needs careful consideration and taxation planning, and income to the trust has to be carefully considered.

Child Maintenance Trusts

Roosters_64.

Here's a document that you may find helpful.

Note that there are some errors and also that this was produced prior to the implementation of the new legislation.

Attachment
Guest said
Main advantage is the money is not taxed.

Editor said
This response from Guest is hardly worthy of posting but it is posted to make a point that the answer is far more complex than stated "the money is not taxed".

There are other responses in the forums to this question that offer a much greater insight into trusts which are effectively companies these days and subject to much more scrutiny than in the "old days".

A trust needs careful consideration and taxation planning, and income to the trust has to be carefully considered.

so as I said "Main advantage is the money is not taxed"

as you say one needs not only a switched on accountant but also a lawyer to actually set one up, because these are the means by which lawyers themselves can earn a million and pay no tax, cept these are Family Trusts and not CM Trusts [or lawyer trusts]
I recommend the Australian book "How to Legally Reduce Your Tax".

Tax will still be paid by "the child", but at the adult tax rate.

So, one could say that these trusts are not taxed, as long as each child/recipient earns no more than the tax free threshold ($6K?). But, strictly speaking, they are taxed.


Junior Executive of SRL-Resources

Executive Member of SRL-Resources, the Family Law People on this site (Look for the Avatars). Be mindful what you post in public areas. 
Looks like it would be a handy vehicle for a self employed individual with both a substantial income and a few young children, otherwise the cost would outweigh any financial benefits.  For mug PAYG salary earner the answer lies in legitimately claiming every last tax deduction possible, including buying a selection of blue chip shares secured by debt and hoping payee doesn't initiate COA.  If they do, sell the shares as needed to cover the increase in CSA (if any).   
That has been the case Bigred however the govt are now awake to it and taking steps to stop this. They can now include childrens assets as part of the parents and tax accordingly. I can't remember where I read this but it was sometime mid/late last year on an official site. (not news, or a forum etc)

When you are swimming down a creek and an eel bites your cheek, that's a Moray.
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