I was hoping that some of you trust and structuring experts could take a look at…
<Link removed… thanks for the help.>
This is a structure I am in the process of establishing. Comments, ideas, criticism, etc is welcome. I want to get this right so I will not have to change anything for years!!!
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdLooks good, but why not a unit trust with the units held by the discretionary (or hybrid discretionary). This many come in handy in transfering property to your SMSF in future without stampduty.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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
Because I don’t know the benefits of a hybrid and I don’t think a unit trust will be suitable because it won’t let me move the funds around as needed to minimise tax.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdIt will if your unit trusts pays the hybrid discretionary trust which can do as it pleases so too speak
Byronent
Adelaide SACan someone explain hybrid trusts please. I would prefer not to go look it up as I have heaps to do!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdOriginally posted by The Mortgage Adviser:Can someone explain hybrid trusts please. I would prefer not to go look it up as I have heaps to do!
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Like writing endless posts[biggrin]
A unit trust will not effect distributions. The unit holder would be the discretionary trust, so all profits could be moved around at the trustee’s discretion.
A hybrid, allows the unit holder to borrow money in their own name (not the trust) and so claim the interest against their own personal income. This in effect allows you to negative gear with a trust.
If you are going to the trouble of setting up an expensive structure, maybe you should get Dale’s book to get a better idea on how trusts work. And look at http://www.chrisbatten.com.au
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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
That is what I pay accountants for… so I don’t have to read about things that do not interest me. I am sure I will know soon enough as I get further into the Accounting course.
Regarding my posts, I am a very fast typer and I have the page on auto refresh. It takes me a few seconds to write a post like this. I often get the flood warning!!!
My longer posts I do late at night while watching TV at home.
My girlfriend is also away so that explains a lot of it!!!
I guess some people are having issues with it so I might just have to reduce the number of posts I think. It has been mentioned more than once in the last few days.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdRob,
One question: where the line says “Director Loans” between the sole director and the trust, would that be from the director’s personal funds or from the trading (or trustee) company funds?
If the director is lending company funds to the trust, I think it would have to be at the ATO-approved interest rate to avoid the Div7a provisions (ie. having the money declared as a dividend to the shareholder).
GP
Director’s personal funds earned from wages from the trading company and other income sources.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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