Standard Relationship Trust

On average there are 4.8 marriages per 1000 people and 2 divorces per 1000 people, giving a divorce rate of 41.6%

For many of these people they will go on to live their lives alone.

One factor for this, is a fear of risking their asset base should they re-enter a marriage* or the complications for the redistribution of their assets to children when they die.

To remedy this situation we will create a “Standardised Relationship Trust” (SRT) so that people who are entering subsequent relationships can transfer their assets into these trusts.

The main points are as Follows;

1. These trusts are only available to people who have previously been married*
2. SRT’s are not tax havens; any income earnt in the trust must be distributed to the primary beneficiary.
3. An SRT can only receive assets that were owned by the primary beneficiary prior to entering into any subsequent marriages* or are from an inheritance or gift given to the primary beneficiary form a person outside the Marriage*. 
4. An SRT cannot receive income from any source that is not directly owned by the SRT.
5. Any person who places their assets in a SRT must disclose this to their subsequent partner
6. Assets held in a person’s individual name can be transferred into the SRT without being subject to State and Federal Stamp Duty charges.
7. Upon the death of the Primary beneficiary the trust must be settled and distributed to the secondary beneficiaries all of whom must be individuals or registered charities.
8. Details of, and distribution allocations to, Secondary Beneficiaries can be altered without having to settle the trust.
9. The terms and conditions of the SRT will be a standard document and cannot be amended or altered. 
10. The primary Beneficiary can nominate their “Primary Place of Residency” as an asset owned by their SRT for capital gains tax and welfare purposes.
11. All SRT’s will be allocated an identifier number that must be used for all asset acquisitions and disposal transactions.

This policy is just one incremental (but important) change in order that everyone has the ability to prosper.

We want to encourage people to remain or enter into new relationships (if they wish) as this has a beneficial impact on society by reducing isolation, mental health issues, housing shortages and affordability and the demand on Government services as a result of our aging population.

*Married (Marriage/s) includes common law marriages and registered relationships.

Data Source 3310.0 - Marriages and Divorces, Australia, 2018 (Australian Bureau of Statistics)