Wednesday, April 3, 2013

What are the broad alternatives for professionals not wanting to use service trusts?

As set out in earlier posts, and with thanks to the Television Education Network, today’s post addresses the issue of ‘What are the broad alternatives for professionals not wanting to use service trusts?’. If you would like a link to the video please let me know.

As usual, a transcript of the presentation for those that cannot (or choose not) to view the presentation is below –

There's the ability to completely restructure the existing arrangements and move into a new structure and if that alternative was to be taken, there are then a series of different arrangements that might be entered into, and that can include a new structure in total, or some sort of hybrid arrangement. 

The types of structures that are available are only really limited by your imagination in terms of what may or may not be useful. 

Obviously, there are also a number of commercial issues that need to be taken into account.  Many of those will be driven by the actual underlying nature of the partnership that’s involved, but generally there are two alternatives if you're moving out of an individual structure, and that can be to incorporate or to form some sort of trust arrangement. 

Within those two parameters or those two goalposts, there's quite a large playing field in terms of what that might look like.  So in some instances, there's a hybrid between both companies and trusts.  In other instances, there are trusts which are of a hybrid nature.  So in other words, a unit trust or some sort of partnership of trusts or a blended discretionary trust.  Again the common theme is that it’s largely driven by what's going to be most useful for the underlying partners involved.

Until next week.