i have 4 props overall slightly CF+ about 2-5K depending on outgoings
they are all in my name as initially they were negatively geared in the first 2 or so years
my understanding of trusts is still not great but i would like a trust now; incorporating all my properties, for asset protection and tax benifits
Qs
– can i still put these props into hybrid trusts or units trusts or any other available trusts OR is it too late, that i should have done it earlier– if my outgoings for eg. becomes more than rent due to renos or interest rate rises, what trust is best to offset this CF-ve aspect or do i accumulate this debt until i get some CF+ which i can off set then
Pls reply as i’m still confused about trusts in general and new to it, my accountant and lawyer is not too good at explaining these concepts and I’m too busy to get another or read the prescribed texts recommended
Cheers,
NOT LAZY JUST BUSYfjficm
I’d suggest talking to someone like Melbear, who has a good grasp of Trust structures.
My understanding is that with your current properties, you’d have to essentially ‘sell’ them to your trust, incurring hefty Stamp Duty on this transferall.
The ATO also is supposedly looking at Trust structures set up for purely reasons of Tax avoidance, however if you’ve set it up for the benefit of your family etc i think you standa better than even chance.
Someone sueing you i’m led to believe, can still chase your assets in the Trust structure if they are there solely for Asset protection, think having several Family members, children etc would minimize this…
Please note- I don’t have a Trust structure set up ( have thought about it, spoke to my accountant, approx $800 to set up )My thoughts are based on what i’ve read and interepreted..[exhappy]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
My understanding is that with your current properties, you’d have to essentially ‘sell’ them to your trust, incurring hefty Stamp Duty on this transferalland possibly Capital Gains Tax as well!
Rod.
Yeah, stamp duty and CGT would be payable, and probably legal fees. It may be better to just leave them as is and buy any future properties in a trust.
If you a sued, the assets held in Trust are usually untouchable – as they are not your assets. The ATO is looking as various schemes related to trusts such as the refinancing princple (where you can claim deductions for things that are usually not dedcutible) and renting your home from a unit trust that you are trustee of. In general, I don;t think they have any problems with Trusts.
If your trust income goes into negative, then this is quarrantined in the trust to be offset against future income, ie you cannot distribute a loss. Hybrid trusts can get around this.
Terryw
Discover Home Loans
North Sydney
[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
Fjficm
I would really recommend you grab Dale Gatherum Goss’s Trust Magic. It’s an easy read, and could probably be done in an hour or so. then you can refer to it for specific questions. Make time!
I think we’re probably fairly safe on Trust Law (that is Family Trust) not changing too drastically, cos I’d bet you a Million bucks that our politicians hold most of their wealth via that structure. And I certainly can’t see them passing into law anything that will effect them negatively!! Certainly not retrospectively (note how the Super changes for pollies are only for ‘future’ pollies[baaa])
Cheers
Melthx guys that was useful
can i just go out and buy this book at any good book outlets?No, you can only buy it form his website: http://www.gatherumgoss.com it costs approx.
Sorry about that (thinking of another audio program – it is worth it though! – Thanks Chan$).
Rgds.
Lucifer_auOriginally posted by Lucifer_au:No, you can only buy it form his website: http://www.gatherumgoss.com it costs approx. $400, but is well worth it.
Rgds.
Lucifer_auIt’s only cost $95-$99 for trust magic, there are another book by him ‘Tax Battle’ = $95-$99 which I believe is a good read as well.
Toward the end of API magazine there are also advertising of those two books and yes you can buy from them as well.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]I recently purchased a copy of Trust Magic and would recommend it. It gives you a good idea of the advantages of trust structures. Well worth the cost of the book.
CarLover.
If you buy both books at the same time, you actually get a discount. For memory, I think the two cost me $168.
James
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