Discretionary (Family) Trust
The trustee decides who receives income or capital, and how much — no beneficiary has a fixed, enforceable entitlement.
Example structure
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McVeigh Family Trust (Discretionary)
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Peter McVeigh Appointor Verify
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Louise McVeigh Appointor Verify
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John McVeigh Trustee Verify
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Sarah McVeigh Beneficiary (class) Identify only
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Requires verification
KYC, VOI and PEPs checks on the individuals needed
- Appointor / ProtectorHolds the power to remove and replace the trustee — the ultimate check on the trustee's control. This is a pure-control role, verified regardless of any beneficiary rights.
- Trustee(s)The legal owner and decision-maker for every trust asset. Verify at least one individual trustee, or look through a corporate trustee to its own directors/UBOs.
Identify only
Details are found on the trust deed. No ID proof needed
- BeneficiariesOnly the class of beneficiaries is identified from the deed (e.g. "the children and grandchildren of the Smith family") — not verified. They have no fixed entitlement and can't access trust assets without the trustee first exercising discretion in their favour, so they carry no independent control risk.
- SettlorIdentified by name from the deed only. Their role typically ends once the trust is settled, and they retain no ongoing control unless they're also the trustee or appointor — in which case verify them in that capacity.
Non-Discretionary (Family) Trust
Set up with the same 'family trust' deed as a discretionary trust, but drafted to vest fixed, ascertainable entitlements to named beneficiaries instead of leaving distributions to the trustee's discretion — often done deliberately for tax reasons, e.g. to meet fixed-entitlement tests for small business CGT concessions.
Example structure
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McVeigh Investment Family Trust (Non-Discretionary)
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Peter McVeigh Appointor Verify
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Peter McVeigh Trustee Verify
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Jonathan McVeigh Trustee Verify
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Sarah McVeigh Beneficiary (fixed 50%) Verify
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Emma McVeigh Beneficiary (fixed 50%) Verify
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Requires verification
KYC, VOI and PEPs checks on the individuals needed
- Appointor / Protector (if the deed includes one)Verified on the same control basis as any other trust.
- Trustee(s)Verify at least one individual trustee, or look through a corporate trustee to its directors/UBOs.
- BeneficiariesVerified — because the deed vests a fixed, guaranteed entitlement to income or capital, these beneficiaries can access their share without needing the trustee's permission. Same rationale as a unit trust, despite the 'family trust' label.
Identify only
Details are found on the trust deed. No ID proof needed
- SettlorIdentified by name only. Role ended at settlement, no ongoing control unless also trustee or appointor.
Unit Trust
Beneficial interests are divided into units. Each unitholder's entitlement to income and capital is fixed, guaranteed, and doesn't depend on the trustee's discretion.
Example structure
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McVeigh Property Unit Trust
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Peter McVeigh Appointor Verify
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McVeigh Holdings Pty Ltd Trustee (corporate) Verify
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Peter McVeigh Director / UBO Verify
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Emma McVeigh Director / UBO Verify
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Jonathan McVeigh Unitholder (60 units) Verify
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Sarah McVeigh Unitholder (40 units) Verify
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Requires verification
KYC, VOI and PEPs checks on the individuals needed
- Appointor / ProtectorIf the deed includes a trustee-removal power, that person is verified regardless of unit holding — same control logic as a discretionary trust.
- Trustee(s)Verify at least one trustee, or look through a corporate trustee to its directors/UBOs.
- Beneficiaries / UnitholdersVerified because they can access their share of income and capital as of right — without needing the trustee's permission. In practice, firms typically apply this to unitholders holding a threshold interest (commonly 25% or more), mirroring the company-shareholder test.
Identify only
Details are found on the trust deed. No ID proof needed
- SettlorIdentified by name only — role ended at settlement, no ongoing control unless also trustee or appointor.
Bare Trust
The trustee holds legal title only and must act exactly as instructed — no discretion, no active duties beyond following the beneficiary's directions.
Example structure
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McVeigh Settlement Nominee Trust
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Sarah McVeigh Beneficiary (directs trustee) Verify
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McVeigh Nominees Pty Ltd Trustee (nominee, corporate) Verify
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Peter McVeigh Director / UBO Verify
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Requires verification
KYC, VOI and PEPs checks on the individuals needed
- BeneficiaryThe trustee has zero discretion, so the beneficiary is the true controlling party — they direct every action. Verify the beneficiary as you would the trustee in any other trust type.
- TrusteeStill verified as legal titleholder — lower control risk on its own, but still the party executing documents.
Identify only
Details are found on the trust deed. No ID proof needed
- AppointorBare trust deeds generally don't include one — there's no discretion for anyone to police, since the trustee has none to begin with. Where a deed does include one, verify it.
- SettlorIdentified by name only.
Testamentary Trust/Deceased Estate
Arises under the terms of a valid will on death. Whether it behaves like a discretionary or fixed trust depends entirely on how the will is drafted — but either way, there's no living settlor to verify.
Example structure
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Estate of the late Margaret McVeigh
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Margaret McVeigh (deceased) Settlor-equivalent Identify only
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Peter McVeigh Executor & Trustee Verify
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Jonathan McVeigh Beneficiary (discretionary class) Identify only
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Sarah McVeigh Beneficiary (fixed vested gift) Verify
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Requires verification
KYC, VOI and PEPs checks on the individuals needed
- Executor / Trustee of the estateFully verified using normal trustee rules — this person is alive and actively operating the trust.
- Appointor (if the will names one)Verified on the same control basis as any other trust.
- Fixed/vested beneficiaries (if the will gives an unconditional gift)Where the will grants a beneficiary an immediate, unconditional entitlement, treat and verify them exactly like a unit trust beneficiary.
Identify only
Details are found on the trust deed. No ID proof needed
- The deceased (settlor-equivalent)Cannot be verified against ID documents. Record their name and sight the Grant of Probate or the Will instead — no further identity verification is required or possible.
- Discretionary beneficiaries (if the will gives the trustee discretion, e.g. for minor children)Identify the class only, not verified — same logic as a discretionary trust, since access depends on the executor/trustee's decision.
Charitable Trust
Established for a charitable purpose — community, religious, educational, or welfare — often registered with the ACNC. There's no private beneficiary whose access needs checking.
Example structure
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The McVeigh Foundation
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McVeigh Foundation Ltd Trustee (corporate) Verify
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Peter McVeigh Director Verify
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Jonathan McVeigh Director Verify
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General public / community Beneficiary class Identify only
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Requires verification
KYC, VOI and PEPs checks on the individuals needed
- Trustee(s) / directors of a corporate trusteeThe only individuals with actual control over the trust's activities and funds — verify each.
- Appointor (if the deed has one)Verified on the same control basis as any other trust.
Identify only
Details are found on the trust deed. No ID proof needed
- "Beneficiaries"The beneficiary class is the public or a defined community — no individual holds a private, enforceable interest in trust assets, so there's no person to verify in this category. Focus instead on the trustees and the trust's stated purpose.
SMSF Trust
A self-managed super fund trust holding members' retirement savings — in most cases, the members and the trustees are the very same people.
Example structure
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McVeigh Superannuation Fund
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McVeigh Super Pty Ltd Trustee (corporate) Verify
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Peter McVeigh Director & Member Verify
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Jonathan McVeigh Director & Member Verify
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Requires verification
KYC, VOI and PEPs checks on the individuals needed
- Individual trustees, or directors of a corporate trusteeVerify each — in a standard SMSF, this list is identical to the member list, so verifying the trustees already covers the members.
Identify only
Details are found on the trust deed. No ID proof needed
- Members, as a separate "beneficiary" categoryNot a separate verification step in a standard SMSF, because every member is also a trustee (or director of the corporate trustee) and is already verified in that capacity. If a fund ever has a member who is not also a trustee, treat that person like a fixed-trust beneficiary and verify them directly — they hold a guaranteed entitlement to their own balance.