A family discretionary trust is an arrangement where assets are held by one or more individuals (or a company) with the intention that the benefit of the assets will be transferred to other specified individuals on the terms spelt out in a document called the trust deed.
a trust deed - which contains all of the rules by which the trust must be operated;
a settlor - who provides the initial sum of money to start the trust, and then has no other role;
a trustee - being one or more individuals or a company, who are to hold the trust assets in their name, invest them or otherwise earn income on them, arrange the preparation of annual tax returns and, after consulting the trust deed (and probably their accountant), decide to make distributions of income and/or capital;
the trust assets - which are the amounts of money, properties, shares, investments, chattels, etc which represent the wealth of the trust;
the beneficiaries - who are the people, companies, charities and perhaps trusts for whom the trust assets are held by the trustee and to whom the benefit of the trust assets can be transferred as permitted by the trust deed;
the appointor - is the most powerful person in the trust, whose only job is to hire and fire trustees (as permitted by the trust deed).
There must be a trust deed.
It will have a trustee, trust assets, beneficiaries and an appointor.
It must have its own separate bank account, TFN and may need an ABN.
There must be a book of minutes recording the decisions of the trustee.
It should have an accountant and financial advisor.
The trust assets which are used to generate the income of the trust.
A memorandum of wishes which is your way of letting future trustees know how you would like the trust to operate after your death.
A deed of appointment or a provision in your will specifying a successor appointor.
http://www.findlaw.com.au/articles/4606/what-is-a-discretionary-trust-and-what-are-the-ben.aspx
A Trustee or Trustees - are the individual or individuals (which generally must be the members of the fund) or a private company (whose shareholders and directors generally must be members of the super fund) that manage the fund.
A Super Fund Deed - is the document which (together with the superannuation legislation) provides the rules by which your super fund will operate.
The Super Fund’s Assets - is the money and other property which are transferred into the fund by the members and held and invested by the trustee.
A Written Investment Strategy - is the document outlining the types of investments that can be made with the super fund assets.
Members of the fund - are you and your family members who transfer assets into the fund where they are recorded in the respective members’ accounts.
The fund should have an accountant and financial advisor.
The fund must be registered with the Australian Taxation Office.
Death Benefit Nominations - are documents in which you can remove the super fund trustee’s discretion as to who is to receive your super fund assets when you die by specifying exactly to whom they are to be paid and in what amounts.
An SMSF should provide you with a very tax effective way of saving for your retirement.
An SMSF may give you a way of leaving a very tax effective pension for your spouse or financial dependents when you die.
An SMSF allows you to manage your own superannuation assets or obtain the advice from your own preferred experts as to how those assets should be managed.
An SMSF may deliver savings in the costs of management and compliance.
An SMSF is another tool for you to use in your estate plan, particularly when you make non-lapsing, binding death benefit nominations.
Links:- https://www.ato.gov.au/Super/Self-managed-super-funds/
http://www.chan-naylor.com.au/asset-protection-discretionary-trust/#FeaturesBenefits