This is often used in tax planning where trustees want to distribute to a corporate beneficiary (taxed at 30%).

Provided the beneficiary class of the trust is broad enough to include related companies and trustswithin thegeneral beneficiary class,you are able to do this provided the shareholder of the company allows the company to be included in the general beneficiary class. Have a lawyer carefully review the terms of the trust deed and work alongside the trust's accountant.

You mayalso want to considerwhether another family discretionary trust should be the shareholder of the corporate beneficiary, so as to allowflexible distributions of income at the corporate beneficiary level.