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Just remember that a trust deed is not the same as a good trust deed. Sometimes a more expensive price can be better in the long run.
A good trust lawyer can break into most trusts in about 5 minutes. I have seen it done.
A family trust can also restrict you in a lot of ways. Consider a discretionary trust and if the person you deal with doesn’t know the difference then find someone else.Eleven
Why a family trust? There are many advantages ofa discretionary trust that are more flexible than a family trust.
You must specify at lease onn benificary for the trust, but with a good trust deed you can change this at any time quite easily.
If you use the trustee company to buy the property you may as well buy it in your name. You should buy it in the trust.
If you want to talk to me about possible structures just e-mail me at [email protected]GreatPig
The $772 is for earned income eg.worked for. Income from an unearned sorce eg. distributions from a trust will be taxed at 66% on tax free.You do not need a hybrid trust to claim the intrest, there are some exelent stratagies for this using less complex structures
If you use a discretionary trust the benificaries can be any other entity, including a company or other trust. Also if you distribute funds to a minor(under 18) you will be taxed at 66% from dollar 1(no tax free threshold).
There ary many personal circumstances that should be considered and I recommend talking to an expert before doing anything.Colin Wardle
CATA Asset Protection
[email protected]coastymike
Some valid points, one size never fits all but you can change the size and shape of a discretionary trust sooooo many ways.Setting up any trust HAS TO BE FOR ASSET PROTEcTION( as far as ASIC is concerned)
Negative gearing can be used to great affect using a discetionary trust. You can quite easily protect assets outside the trust, in doing so getting all the benifits you mentioned. Also being able to protect the principle place of residence without CGT, land tax ect, while also being cost effective.
Sounds like you are an accountant with his head screwed on the right way and it is good to see. I have seen some shockers.
I think we are leading this forum out of many peoples depths. If you want to continue just e-mail me.
Hybrid trusts are high in maintance and if not used correctly are worthless.
Unit trusts are far to easy to workout how much each unit is worth eg trust has $1 000 000 asset. 2 unit holders are worth $500 000 each.
I use discreationary trusts(not family trusts). The asset protection is equal to ANY other trust and far more flexible( and easy to use). If set up correctly they can also protect assets OUTSIDE the trust.
The profits can be distributed to anyoene over 18 or a bucket company to cap the tax at 30%.As far as an accountant is concerned, these are LEGAL structures. Don’t get me wrong there are some good accountants out there, but they are accountants and good trust structures can be a specialty in themselves.
Colin Wardle
CATA Asset Protection
[email protected]
