Bit of a broad question.

First thing you should be asking is whether to set up a trust at all.
Then are you considering a company as trustee of a trust or a company with the shares held by a trust.

Then consider
– land tax
– asset protection on bankruptcy
– asset protection on death/estate planning.

e.g. if you are buying in QLD it might be…[Read more]

excel, with a summary tab and a different tab for each property.

Estate planning is more than wills and documentation. Its about planning who takes control of ‘your’ assets after your death or incapacity (or even while still kicking).

I get many clients wanting to gift large sums of cash, or even the majority of their wealth to trusts. They don’t realise that this is really giving assets away. It is generally…[Read more]

I had a friend who bought a property years ago, in his own name because he wanted to get negative gearing benefits. He had a non working wife with no income and he was on the top tax bracket. The property jumped over night and he sold it within 2 years at double what he purchased it for. He was still on the top tax bracket and wore the full…[Read more]

Hi Jaxon

Well, it would all depend. I would probably suggest if they are going to buy property to buy the first one in their own name and get access to the main residence CGT. If they are concerned about asset protection perhaps a gift and borrow back to a related trustee of a discretionary trust. Estate planning needs to be tied in with…[Read more]

No I am asking if you have considered the points I made. I know nothing about your situation so could not recommend one way or the other.

Was your friend qualified to give such advice?

If the main residence is owned by the lower income earner this may be good for tax purposes if the income will exceed the costs once you move out. But income is only one aspect to consider. What about estate planning, asset protection, CGT, land tax, serviceability, and ability to use various…[Read more]

If selling don’t forget to factor in about 24% lost of CGT.

Good start mate

I like to think in terms of today’s dollars as property and shares should (hopefully) grow at least as fast as inflation.

$200k is that pretax or post tax? That is a lot of money either way, probably 8 times the pension amount. Do you really need this much as the less you need the quicker it will be. Also consider that there m…[Read more]

I am not an accountant but it looks cheap to me.

Very lucky!

i wouldn’t – whats the point without growth?
If would tie up a large chunk of your borrowing ability and deposit.

go see a lawyer

easiest and cheapest way is to not be a director of the trustee and to not give any personal guarantees.

Other ways are to create charges or interests in the property which could take priority over creditors. Lots of issues though

Why are you paying the deposit? get some legal advice on whether you should lend or gift to the trust. if lending, should it be interest free or at market rates.

COnsidered all the issues with a trust? Could end up paying more tax.

Resi is generally always easier because residential loans are easier. But commercial loans are not covered by the NCCP Act so there may be arguments that these loans are less strict.

I know of no reason why you cannot offer. But lawyers have been warned by the law society against participating in rebate schemes like this where the intent is for the buyer to get a higher loan amount.

Structuring will depend on the circumstances such as strength of parties, agreed split, financing ability,trust.

One I set up recently involved company owning property with 50% each owned by trustees of a discretionary trust. Builder family was a beneficiary of second trust. Company then entered building contract with builders company.

End…[Read more]

2 potential errors in this quote Jaxon.

roughly 6 times annual income = very rough

Good luck at lets us know how you go.