Hi guys,
I'm wanting to learn a little more on Family Trusts.
Simple explanation – looking to buy first investment property in the next twelve months and don't know whether to just purchase under my partners and my name or to purchase under a family trust.
Ultimately these properties will go to our children when we pass on.
So would it be better financially and personally to just put in our names and make sure there's a will saying they get the properties or do we put in a family trust and leave it to them that way?
Thanks.
Discretionary trusts are excellent for owning appreciating assets such as property. Draw backs are that any losses in the trust cannot be used to offset your own personal income. This is less of a problem these days with low rates. Another problem is you may end up paying more land tax. But the good points outway the bad, and these include:
– Asset protection
– Tax minimisation
– estate planningThe best way to get a quick understanding is to read the book 'trust magic' by Dale Gatherum-Goss
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
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