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Many clients have been guilty of making a very easy mistake when it comes to ensuring the correct name is on an invoice.
In particular, trusts provide complications. If you do not invoice the correct entity, you and your clients can have major difficulty collecting the debt. Trusts cannot be sued.
Most invoices to trusts from you or your customers may be issued to “the ABC Family Trust”, by way of example.
You should always make reference to the trustee when invoicing a trust or superfund. In this way, you can enforce your invoice against the trustee, which can be sued.
So, if ABC Pty Ltd is the trustee for “the ABC Family Trust”, then you can either make the invoice to:
This is good practice for all forms of documentation when it comes to trusts, but may provide you or your clients some assistance in collecting debts in the future.