when signing a contract under a discretionary trust what is the best name to nominate ie trustee and or nominee OR trust name.
when I say best I mean with respect to asset protection[suave2]If buying in the trust name, you just use the trust name. If you are not sure, using ‘or nominee’ just means you can work it out later. Talk to your solicitor or accountant to see what is best for you.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Hi,
I’m not a lawyer, but as I understand it (and be sure to verify this), technically, a trust cannot operate in its own name (as it is not a separate legal entity), and as such, it would correct to have the nominee clause as:
<name of trustee(s)> As Trustee for <name of trust>
Be careful with nominee clauses too… generally (in Australia) the entity must have been established prior to the contract being signed. Seek legal advice for more detail.
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
thanks steve
I ve since read that the trust not being a legal entity, is correct. I actually as part of anegaotiaion with the vendor rescinded the contract and repurchased after the establishment of the trust – to everyones agreement including the bank.
look farward to meeting you at an 05 seminar which i am soon to book.
Im living in darwin at present – any experience in this region??
benI learn so much on this site about trusts. This is good stuff but it just tells me I need to sack my team and start again. I think my new accountant is decided. If nothing else, the cost of the seminar was worth it just meeting up with Mark Unwin. I just need to sort out how to get all the paper work together and down to Melbourne so it can all be sorted out.
Steve, would you like to recommend a good solicitor??? (Hint hint!!)
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
I agree with Steve on the signing. It is better to talk to your solicitor before you sign anytihng anyway.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | 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
I forgot the rest…..
I was going to add, the rules around and/or nomineee clauses vary from state to state. In some instances, you can set up a trust or company after exchange, and then nominate that entity before settlement. In other states, this would result in paying stamp duty again.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | 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
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