Hello,
Anyone know about Hibrid Discretionary Trust Deed?
Please advice where to order and how much cost to set up?
Thanks.Kindly Regards,
Dennis
[email protected]Hi dntstran
Where do you live?
If in Sydney you can use Patricia Holdings http://www.patricia.com.au
The cost is $297.00 to setup the trust. If you want to setup a company as well, the cost of a standard company is $1020.50.
WHJ
Hi,
I’m not a big fan of these as I view it like neapolitan icecream – it has a little bit of everything but not enough of anything.
A hybrid trust incorporates a mixture between fixed entitlements (like a unit trust) and discretionary entitlements (like a family trust).
I’m yet to hear a good argument for why a hybrid trust is needed, when a unit or a family trust seems to be a cleaner and better option.
I’ll talk about unit (fixed entitlement) trusts in the next newsletter.
For those interested in detailed structuring information, I draw your attention to the recently released Wealth Guardian product.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Go to http://www.chrisbatten.com.au
I hear that the hybrid trusts are not as good for assets protection as a discretionary trust and the unit holder could be sued and loose their unit.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hybrid trusts are the best option for people who wish to negative gear as you cannot get these benefits through a discretionary trust.
Hybrid trusts are the best option for people who wish to negative gear as you cannot get these benefits through a discretionary trust.I think ur right…
I was told that with the Hibrid trust structure. You can go to banks to get loan to buy units from trust, The trust then has money to buy rental property. Will distribute the rental income to you for negative gear or can distribute to your family members.
Any advice the different between company/Hibrid Trust & Hibrid Trust? advantages and disadvantages?Hi,
Just be careful.
Losses can not be distributed from a trust, only the profits flow through to the beneficiaries.
Losses on the other hand, are accumulated in the trust to be offset against future income.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Steve
I think the point to the hybrid is to make the losses distributable. I am no accountant, but I think that discretionary trusts cannot distribute losses, but unit trusts can. A Hybrid is a combination of these two trust types.
There are apparently Hybrid Unit trusts and Hybrid Discretionary trusts. Both are slightly different, but I don’t know how they differ. There are actually sample trust deeds on Chris Batten’s site at http://www.chrisbatten.com.au
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
One more thing on hybrids. I have heard that banks do not like lending to Hybrid trusts, so it may be harder to get finance. Although I am a mortgage broker, I have no experience in this area. Could any other brokers out there please comment? Or anyone with a Hybrid Trust?
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
One more thing on hybrids. I have heard that banks do not like lending to Hybrid trusts, so it may be harder to get finance. Although I am a mortgage broker, I have no experience in this area. Could any other brokers out there please comment? Or anyone with a Hybrid Trust?Terryw
[email protected]
One more thing on hybrids. I have heard that banks do not like lending to Hybrid trusts, so it may be harder to get finance. Although I am a mortgage broker, I have no experience in this area. Could any other brokers out there please comment? Or anyone with a Hybrid Trust?Terryw
[email protected]With regards to borrowing to buy units in a Hybrid trust, we have had success with CBA,Westpac and Bankwest ( St george will not borrow under this structure). Typically the lender will place a mortgage over the property and require the trustee of the Hybrid trust to commit to a commercial guarantee.Extra paper work is involved, however providing the trustee or directors of the corporate trustee and unit holders of the Hybrid trust (borrowers) are one and the same, finance is generally accessible.
Re use of chris batten services.
We have had some involvement with the use of Hybrid trusts from chris batten,would be happy to answer any queries.
Kind Regards
RyanRyan,
If it is possible, could you please tell which branches of these bank offer with regards to borrowing to buy units in a Hybrid trust?
I have some brokers answer no help for this type of structure.
Would you mind advice the deal/package and rate have you got?Thanks.[
]
dntstran
[/quote], we have had success with CBA,Westpac and Bankwest ( St george will not borrow under this structure). Typically the lender will place a mortgage over the property and require the trustee of the Hybrid trust to commit to a commercial guarantee.Extra paper work is involved, however providing the trustee or directors of the corporate trustee and unit holders of the Hybrid trust (borrowers) are one and the same, finance is generally accessible.
Kind Regards
Ryan
[/quote]All,
lending in a hybrid trust structure is generally done by almost all lenders. The key to success are a few things:Keep it simple, by that I mean to have the title in the trust name but do the borrowing under your personal name with the trustees signing as guarantors (yes, in most cases these people will be identical, but that’s the way the banks like to see it).
Do not try to get too sophisticated with purchasing and selling of income units, this will just scare the hell out of banks and the chances for getting a loan are extremely slim.
Another funny thing is with professional packages (discounts), some banks tend not to give discounts for lending in a hybrid trust structure (such as ANZ and I believe also CBA and NAB). Other banks treat loans for a hybrid trusts as commercial lending and have a whole new set of rules available. Other banks still give decent discounts for lendings in a hybrid trust.
With all this in mind and looking at the other responses way up your risks/benefits such as professional packages and negative gearing vs asset protection in a hybrid trust structure.
I hope this helps a little bit.
Yours sincerely
Rolf Schaefer
RJA Financial Services Pty Ltd
Accredited Mortgage Broker
Tel: 03 9753 9044
Fax: 03 9753 9055
Mobile: 0422 907 022
E-mail: [email protected]
]
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