Can an Accountant Set Up a Family Trust?

Understanding Family Trusts and Legal Requirements

A family trust—also known as a discretionary trust—is a legal structure used to hold and manage assets on behalf of beneficiaries, typically family members. The trustee (who may be an individual or company) controls the trust and decides how income or capital is distributed. We’re here to answer the question of “can an accountant set up a trust?”

Family trusts are commonly used in Australia to:

• Distribute income to beneficiaries in lower tax brackets
• Protect assets from personal or business risk
• Manage ownership of family-held investments or businesses

If you’re thinking about setting up a trust for tax planning or asset protection, it’s important to get the structure right from the beginning. Our trust establishment service is designed to guide clients through this process efficiently, with professional advice and practical support at every step.

While this blog focuses on the setup process, it’s worth noting that family trusts can also support succession planning. If you’re looking to protect family wealth over the long term, our estate planning service can help align your trust with broader financial goals.

Can an Accountant Legally Set Up a Family Trust?

In short, an accountant plays a major role in setting up a family trust—but they cannot legally draft the trust deed. This document must be prepared by a solicitor, as it sets out the rules of the trust, defines key roles such as trustee and beneficiaries, and ensures the trust meets legal requirements.

However, much of the setup and ongoing management is handled by your accountant. This includes advising on the trust’s structure, registering it with the ATO, and supporting its compliance and financial reporting.

Working with both an accountant and a solicitor ensures the trust is correctly established and fully compliant with Australian laws.

What an Accountant Can Do in the Process

While legal input is required to draft the deed, your accountant handles most of the practical and strategic tasks involved in setting up and managing a trust.

Strategic Structuring and Tax Planning

The first step is determining whether a family trust is right for your situation. An accountant will assess your current income, assets, and financial goals to recommend the most suitable structure. This might involve decisions around who should act as trustee, who the beneficiaries are, and how the trust will operate from a tax perspective.

This kind of guidance falls under our business advisory and tax planning services. The aim is to ensure the trust isn’t just legally compliant, but also aligned with your broader financial strategy.

Registration and Setup

Once the trust deed has been prepared and signed, your accountant will take care of the practical setup, including:

• Applying for a Tax File Number (TFN)
• Registering for an Australian Business Number (ABN) if required
• Setting up a dedicated bank account for the trust
• Guiding you through the initial settlement process

This is part of our broader accounting and tax service, which ensures everything is registered correctly and ready for use.

Ongoing Compliance and Financial Management

Trusts require ongoing support to remain compliant. Your accountant will help with:

• Annual tax returns for the trust
• Advising on how income should be distributed to beneficiaries
• Meeting ATO record-keeping and reporting standards

With professional support in place, trustees can be confident the trust remains legally compliant and financially efficient over the long term.

The Family Trust Setup Process (Step-by-Step)

To make it easier to understand who does what, here’s a simple breakdown of the steps involved in setting up a family trust:

1. Structuring Advice (Accountant)

Your accountant will assess your needs and recommend whether a family trust is appropriate. They’ll also advise on how it should be structured for maximum benefit.

2. Trust Deed Creation (Solicitor)

Only a solicitor can legally prepare the trust deed. This document sets out the trust’s rules and must be in place before the trust can be registered.

3. Settlement and Signing (Trustee and Settlor)

Once the deed is finalised, the trust is settled. This usually involves a nominal payment (often $10) from the settlor, followed by the trustee signing to confirm their role.

4. Trust Registration (Accountant)

After settlement, your accountant will apply for the TFN, register for an ABN if needed, and assist with setting up a bank account for the trust.

5. Ongoing Management (Accountant)

This includes preparing tax returns, advising on income distributions, and ensuring the trust stays compliant over time.

What Can an Accountant Do When Setting Up a Family Trust?

Ongoing Support and Making the Right Choice

Why Collaboration Matters

Setting up a family trust is not just a legal task—it’s a financial strategy. Working with both a solicitor and an accountant ensures your trust is created properly and structured to suit your long-term goals.

At Origin Business Consultants, we work alongside trusted legal professionals to provide clients with a smooth and compliant setup from the beginning. This reduces risk, avoids delays, and ensures nothing important is missed.

Supporting Services That Add Value

• Tax Planning: Keep your trust operating tax-effectively year after year.
• Business Advisory: Use your trust to support business growth or manage risk.
• Accounting and Tax: Stay on top of compliance, reporting, and financial management.

Final Thoughts

So—can an accountant set up a family trust? Yes, they can handle most of the setup and ongoing management. But the trust deed must be drafted by a solicitor. The best outcomes come from working with both professionals from the start.

At Origin Business Consultants, we guide you through every stage of the process—from choosing the right structure to keeping your trust running smoothly for years to come.

Get in touch today to speak with our team and take the first step toward setting up your family trust the right way.