What to Review in Your Family Trust at the Start of a New Financial Year

A family trust does not manage itself.

For clients who hold assets, business income, or investments through a family trust, the start of a new financial year is one of the most useful moments to check whether the structure is still working as intended.

This is not about compliance panic. It is about making sure the decisions you made when you set up the trust, and the decisions you made during the year, are still aligned with where you are heading.

1. Review how distributions were handled last year

The end of financial year is when distribution decisions are made and documented. The start of the new year is the right time to reflect on whether those decisions produced the outcome you expected.

A few questions worth asking:

• Were distributions made to the right beneficiaries based on their income positions?
• Was the documentation completed correctly and on time?
• Did the distribution strategy achieve the intended outcome, or were there surprises in the final tax position?

If the answers are unclear, that is useful information. It suggests the process may benefit from more structured planning through the year rather than a decision made under deadline.

2. Check whether the trust deed still reflects your situation

Trust deeds are legal documents that govern who can benefit from the trust and how distributions can be made. They do not update themselves when your family situation or business changes.

It is worth checking whether:

• The defined class of beneficiaries still includes everyone relevant to your current circumstances
• Any changes in family structure, business ownership, or investment strategy have been reflected in the deed
• The deed gives the trustee the flexibility to respond to changing tax law and market conditions

A deed review is a conversation for a qualified adviser. But flagging it now is better than discovering a problem at the worst possible time.

3. Revisit the trust’s investment strategy

If the trust holds investments, a documented investment strategy is not just good governance. In some structures it may be a requirement.

Even where it is not mandatory, a strategy written years ago may not reflect how the trust’s assets have evolved. The new financial year is a natural point to check whether it still fits.

4. Check the structure against your broader goals

The most important question at the start of a new year is whether your trust structure is still the right fit for where your business and family finances are heading.

Businesses grow. Family dynamics change. Tax law evolves. What was the right structure five years ago may not be the most effective one today.

This is not about unnecessary complexity. It is about making sure that the structure you are maintaining is actually delivering value.

A note on timing

A trust review does not need to be complicated. A structured conversation with your accountant covering the four areas above will usually reveal quickly whether everything is on track or whether there is something worth addressing.

If you have not had a proper review in the last couple of years, the start of FY27 is a practical prompt.

We are here if you would like to have that conversation. Call 1300 866 113 or book a time via our website.

This article contains general information only and does not constitute legal or financial advice. Please seek professional advice for your specific situation.

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