All Topics / Legal & Accounting / Discretionary trust for PPOR

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  • Profile photo of TateTate
    Member
    @tate
    Join Date: 2013
    Post Count: 5
    October 31, 2013 - 7:13 am

    Hello all,

    I've been reading these forums recently and I have come to the conclusion that most posters believe that one should NOT place their principal place of residence in a discretionary trust.

    Apart from stamp duty and capital gains tax consideration, why is this so?

    I think it would provide great asset protection for one's principal place of residence if they don't want to take out a mortgage to reduce the equity. This seems especially so if one has a high risk occupation (e.g. lawyer etc).

    I'm just trying to ascertain why people seem so against it for this purpose.

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 31, 2013 - 11:14 am

    Land tax is an additional problem to consider – possible concessions in vic, but not NSW. Stamp duty would be the same whether trust or individual.

    Loss of the land tax exemption and the CGT exemption are the major reasons to avoid using a DT. However it may be worthwhile for some people. I have many specialist medical clients, lawyer clients yet none live in a trust owned property – but I have a 'business man' who does.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 2 posts - 1 through 2 (of 2 total)

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