Forum Replies Created
Hi andymitchell,
I understand that moving cities may not be a very enticing option for you and your expanding family but if you do find yourself leaning towards this as a solution I have a house in Canberra that I am completing renovations on that I could rent to you for $250 (rather than the market rate of $300+) – maybe less depending on what else we could trade (like pool cleaning etc). I would love to be able to give it to you for free but I gotta eat and pay the mortgage too hey
I hope you don’t have to sell and that you find a solution that really works for you – sorry I cannot add to the terrific suggestions posted so far. I am sure you will be back on top of everything real soon – so please don’t slash your wrists
All the best to you and your family, just email me if you find the renal a thing you want to talk more about.
Cheers, Jo-anne
Hi Grant7,
I have a copy of Wealth Guardian (a terrific resource explaining financial structuring and the different types of structures we can use including the advantages and disadvantages – all in easy to understand terms; You may want to investigate it further).What my understanding of what it says about Discretionary Trusts (and a Family Trust is a type of Discretionary Trust) is this :
A trust has a Trustee (can be one or more but must be separate legal entities (so an individual or a company)) – this is the entity that makes the decisions and is responsible for the day to day running of the trust.
A trust also has beneficiaries – who receive a share of trust profits (can be an individual, partnership, another trust, company). Beneficiaries must be named in the Trust Deed. The distribution (share or dispersement) a beneficiary receives is declared by the Trustee(s)
The Trustee(s) doesn’t own the trust assets it controls them, and may also be a beneficiary.
If, in securing a loan, the lender requires a guarantee, it will be the Trustee(s) that would make that guarantee. The guarantee would have nothing to do with the beneficiary unless they were also a trustee of that trust.
In short, one person can wear two hats – one as trustee and one as beneficiary, so my take on your situation is that you could have your son on your trust deed as a beneficiary but not as a trustee and his future borrowing ought not to be compromised by the trust’s borrowing.
I know you have checked with several sources already, perhaps armed with this information you can recheck with those advice providers – or have a more thorough read of Wealth Guardian (I don’t get commissions
I just found it a really great resource).Good luck.
Cheers, Jo-anne
