A trust is an arrangement where one person or organisation (the trustee) holds assets (the trust property) on behalf of another person (the beneficiary). Trusts can be established for a number of reasons such as tax planning, providing for children or charitable causes.

The requirements for setting up a trust depend on the type of trust you want to establish and its purpose. To create any trust in Queensland, you will need to:

• select a trustee who will agree to be responsible for administering the trust in accordance with the terms of the trust deed;
• have a lawyer prepare a trust deed (a legal document that sets out the rules for establishing and operating the trust) that is to be signed by the trustee;
• give the assets (even if only a nominal amount) to the trustee;
• pay stamp duty to the Office of State Revenue if a trust is created over ‘dutiable property’, as that term is defined in the Duties Act 2001 (Qld); and
• apply for an ABN and TFN for the trust online via the Australian Business Register or through a lawyer or accountant.

You should also be aware of additional legal requirements that apply to particular types of trusts. For example: a trust used to run a business must be registered for GST if annual turnover is $75,000 or more; a trust used to run a self-managed super fund must ensure it complies with the relevant superannuation and taxation laws that apply to it; and charitable trusts are subject to special laws and may be eligible for tax exemptions.

You should speak to a lawyer if you want to set up a trust in Queensland. By pressing the "Take Action" button - which opens late July - LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services.