Wanting More Info on Trust Accounts for Investing

From a lending perspective – there may be restrictions associated with the type of trust you set up. Just make sure that you are aware of this in case the accountant say recommends a Hybrid Trust. 

Regards

Shahin

I can't comment on whether it would be better to keep it separate or not and it depends what your definition of better is? From a tax perspective? Asset protection perspective?

I small problem will be that you will not be able to borrow from traditional lenders if you have just started the business. LVR plays a very important part too.

For trusts just use google and start reading. Lots to take in. Or buy the book "Trust Magic"

For your business I would suggest you quickly move over to a Pty Ltd company, either in its own right with sharehs owned by a discretionary trust or as trustee. This company should not buy property for asset protection reasons. Businesses high a very high chance of getting sued so you wouldn't want to lose your properties.

If you will be negatively gearing a trust cannot distribute a loss. So this will not directly assist in saving tax. But befcuase you will be running a business one trust can distribute to another so the business income can be offset by the negative property and this will save you tax.

You also need to consider land tax.

Too late to consider asset protection once you have purchased a property and too late to implement tax saving strategies (largely).

Each person has to weigh up the costs v benefits I guess.

It is the best easy going intro into trusts I think.

There aren’t lots of pictures in the book Princess, so the kids will get bored with it very quickly.

How did you get them to read at such a young age?

I recall many years ago in the early days of learning about trusts. I had both Rentons and Trust Magic and found Renton's pretty dry reading. I never did finish reading it, but it was good to flick through for additional clarrification every now and then.

That is generally the way to go Keith. But it is also important how the trust is set up and how deals are structure, who guarantees what, what is used as security etc too.

When talking about asset protection people are usually talking about keeping assets from creditors in the event of bankruptcy. Other things to consider are family succession plans and family law issues.

Imagine you having spend thousands on legal advice and having a great asset protection plan in place and then your spouse dies leaving you the house – or one of/ both of your parents.