is a structure where a trustee carries out the business on behalf of the trust’s members (or beneficiaries).
In Australia, a discretionary trust is a common structure to run a business because it offers many taxation advantages such as the flexibility to distribute profit to different beneficiaries (including streaming of dividends to a particular individual(s)), the ability to access significant capital gains tax concessions and stream those capital gains to a particular beneficiary.
A trustee is responsible for everything in the trust, including income and losses. A trustee may be an individual or a company. The trustee is legally liable for the debts of the trust and may use its assets to meet those debts.