Uuumm,

Some pretty harsh comments being made by Lisa in regard to Dale here.

I think most people of average intellegence would have assumed that some of the deductions listed are possibilities depending on your business and exployment circumstances etc. That’s certainly how I interpreted it. But for Lisa to say that the whole of Trust Magic is…[Read more]

Once you have contributed capital (e.g. gifted money to a non fixed trust) any return of such capital to any of the beneficiaries will result in a CGT Event E4. Proceed with caution.

That is basically what I had understood to be the case. Given that only my wife has to contend with business risk we ensure that she has no loans to the trust.…[Read more]

Hi gang,

This issue was discussed in detail on the Sommersoft forum which Terry has pasted some info from.

It seems that either a cheque or a $10 note can be used. Either way is not without its drawbacks.

From memory I recall it being suggested that regardless of how the trust was settled once assets are purchased by the trust and in…[Read more]

Hi Cata,

If my understanding is correct once I gift funds to the trust I would have to pay tax on these funds should I require them to be permanently returned to me at some time in the future. Of course I suppose the trust could loan the funds back to me as an interest free loan. This is providing that the Gov’t doesn’t legislate later down the…[Read more]

Hi Cata,

Thanks for providing further food for thought.

Although I’m only a layperson I find trusts interesting beasts.

I personally don’t like gifing funds to a trust. Fortunately my wife is the risk person and I have very minimal exposure to the usual risks. Hence loans to the trust are in my name.

The challenge with owning property in…[Read more]

Hi gang,

Over time I have heard of a few strategies for protecting the family home using trust structures. I’m going from memory here so my recollection and understanding may possibly be incorrect. OF course none of this is advice.

1. Use your PPOR as security for purchase of IP in trust. Basically just uses cross collaterisation which…[Read more]

Hi Terry,

I think it was some stupid recent legislation that I stumbled upon. I may be totally wrong on this but when I get the chance I will see if I can locate the article and reread it.

Cheers – Gordon

Hi Terry,

Great information from you as usual.

I noted you mentioned the subsequent setting up of a Coy or another trust to distribute to.

The Coy is no problem. However I may be wrong or misunderstood but awhile back I thought I read somewhere that problems can arise if you try to distribute to another trust with a creation date later than…[Read more]

Hi,

Whether its Quicken or Money its probably best to use scheduled payments (and manually adjust if need be) to deal with principal and interest etc as the calculations will often be incorrect and/or each bank may use slight variations. Its still very easy and takes very little time.

Cheers – Gordon

Hi,

My understanding is that with most standard trust deeds this should be no problem. It is easy for this to be done.

As mentioned in another post I just responded to be aware of restrictions that can arise if you have losses in the trust and want to carry these forward. If this situation arises you will have to make a Family Trust election…[Read more]

Hi,

If you haven’t already setup the trust please consider opting for a Hybrid Discretionary trust. You still have all the benefits of a standard discretionary trust but also huge extra benefits of being able to claim any losses against your personal income and other nice benefits. And if things are done correctly the asset protection is not…[Read more]

Hi,

A hybrid disc trust has just a few extra paragraphs in it compared to a std disc trust which allows for the issue of fixed units should you choose to do so. A HDT is a significantly more flexible beast. In addition to a few other benefits it will allow negative gearing whereas a standard disc trust will not.

Be careful which accountants…[Read more]

Dale GG is fantastic. His fees are also very reasonable. But I can tell you now you won’t get better service anywhere. It never ceases to amaze me how quick Dale is to always get back to me with answers.

And for trusts he is right on the ball.

I can’t recommend anyone more highly.

Regards – Gordon

Saw this article to and did some searching for further information.

This crackdown is aimed more at people like private contactors etc who setup companies, trusts and partnerships etc to income split. So an example would be if there are not assets associated with the business and the type of work is similar to what a standard salaried employee…[Read more]

Hi,

Don’t spend any money initially. Firstly devote a lot of time reading through as much stuff as you can on the Somersoft forum. Make sure you go back a few years. You can skim throught a lot of irrelevant stuff.

It will be a relatively easy process to identify who the excellent accountants, lawyers and brokers etc are.

Doing this you…[Read more]