Hi, As a good long term investment strategy for our child we wanted to set up a private family trust. We have one son, whos 4 months old. From what I read, a private family discretionary trust would help us having a separate tax identity for him, so that we can set aside our money for him, and the returns of our investments would not be taxed as it would fall below the threshold. We could add about 1.5 lakhs here which he has recieved from his garndparents as gifts. Had some questions
1. As we have only one beneficiary- our son, there appears no way to make it "discretionary". Is it possible to setup a private discretionary trust with our son and an unborn child?
2. If answer to Q1 above is Yes, then if later on, we don’t have a second child and it is time for dissolution of the trust, then is there any impact?
Do let me know what you think? If there are no pitfalls, how do we go about setting up a trust?
CAclubindia
