Forum Replies Created
Thanks for the advice, guys. I had suggested an ATO ruling to the accountant but he suggested we leave that as a last resort. He seems a bit wary of approaching the ATO, so he’s going to find out some more info over the next fortnight. I can see his point, but then again, once you have a ruling (one way or the other) you know exactly where you stand. Anyway, I’ll post here when he get’s back to me.
Elysium, the IP is not in WA, but good to know other states may treat trusts differently. Looks like I need to do a bit more homework on that!
Hi Mel,
Dale got back to me (very quickly!!!) and explicitly stated that the units are redeemed at cost and not market value. Additionally, no stamp duty or CG is applicable either. I hear what you’re saying about 100% refinancing and that makes perfect sense to me also.
However, ‘perfect sense’ and the ATO don’t always go hand in hand, so I was wondering if you (or anyone else) have put this into practice with the ATO breathing down your neck and what the outcome was.
Cheers
DiggerHi all,
Firstly, great forum!! I’ve been sitting on the sidelines for a while, but now I’m ready to take the plunge. I am quite keen to set up my investments through a trust, and to that end I was just about to purchase ‘Trust Magic’ until I read an article in this month’s Personal Investor. It had the following to say :
quote:
A few years ago, the roundtable discussions looked at family trusts extensively for high-income earners, but these structures have become more complicated to run and have come under increased scrutiny…Williams says you need to have around $5 million to $ 10 million to make a family trust work.
…”I notice accountants, especially second-tier accountants, advise people to set up family trusts, but at the top end of the market very few sophisticated investors are setting up new family trusts. But those people who have already set them up are continuing to extract the benefits of the distribution from the trust. They are not closing them,” he says.
All pretty general and all pretty vague. As I don’t have a lazy $5-10 mil sitting around, I was just wondering if anyone out there might be able to shed some light on the reason behind these comments, before I lash out and buy ‘Trust Magic’. Or should I just ignore them?
Cheers
Ray
