Forum Replies Created
- Josh_P wrote:Check my reply below. I'm not sure if it suffices as symptoms but that's my situation. Any advice will be taken gratefully!
STill not enough detail to answer.
This is like trying goolge for medical advice. A sore stomach may be indigestion or it may be an appendix for example.
Is also not just a matter of determineing tje name of a structure but how to structure the structure. E.g you may think you need to set up a discretionary trust but who should be trustee. If a company who should be director who should be shareholder. How many shares what type of shares. Constitution or none. Terms of constution. Sharehokder agreements. What happens with loans. How to minimise guarantees.
With the trust who shoukd be appointor who backup appointor. What terms of the trust. Any restrictions on trustee benefiting. Any stamp duty implications on changing trustee. What about adding “partners” down the track. Can it be done and how.
What happens on your death?
What happpens onyour incapacity? Do you have a power of attorney? Could this attorney take control of you trustee company and or the role of appointor?
ETc etc
THis is why you need legal advice in setting up a structure. Find a lawyer with a spell checker.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If it is in victoria you can transfer to a spouse without stamp duty. This will be a cgt event though. If you are looking to deduct interest then the transferee will need to buy if from you at full market value and borrow to do so. This can be done without or just nominal stamp duty in vic.
Seek legal advice from a solicitor before attempting this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I don't see this making any difference to owning the property in your personal capacity. If you are looking at landlord's insurance then it may, but not for building.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I just reread the initial post and that is generally a good idea what the broker suggested. But because there are multiple parties we need to consider a few more issues.
When injecting money into a trust you need to consider the loan v gift issues outlined above. You also need to consider taxation aspects too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
dangermouse99 wrote:Ok I'm starting to understand. In lieu of what I want to do. Wat do u suggest I do??May have to work this out over several posts.
FIrst, who is the owner of the cash? You, spouse, trust a , trust b etc? And where is it sitting now?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Dangermouse you have to remember that the trust is not you and you are not the trust so think of it as a third party. When passing money money to a stranger you want to make sure the terms are clear. If it is a loan it is still your money if it is a gift then you give up rights to ask for it back.
Also think of the problems if you were to suddenly die. You family may be clueless about this money and disputed can arise.
Had a trustee client who was sued by a deceased estate over a loan. The trust contolled by the son claimed it was not a lpan while the executors of the mums estate claimed it was. The executors were duty bound to get this.money back and actually sued the trust. Records were no existant and this is what caused tje problems
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Dean
JUst becareful when different entities are involved. Transferring from one to the other is possible but just think of classication. Is it a loan or a gift etc.Things can get messy and it will eventually become impossible to work out.this can lead to weakening of asset protection and estate planning problems too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yep. Thanks Richard.
JUst after I made that post I passed a fatal accident with the dead body of a motorcyclist on the side of the road…
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If ing sold the security property and there was a shortfall they would then be an unsexured creditor
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
What structure is like asking for what is the best medicine
We need to know the symptoms firstTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
House of weslth sre good on the expat side. Speak to michael there in melb office.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
JacM wrote:Hi acurabotThe short answer is no you cannot get profits out of a SMSF before retirement.
Also a SMSF cannot borrow money to make improvements to a property. Even if the borrowings come from you yourself. So if you gave your smsf money to renovate, it'd be just that. A donation. And the profits would belong to the SMSF when the property is sold.
Bit more tricky tjan thst Jac.
A smsf could borrow from a member to reno but could use tje priperty as security.
And it wouldnt be a donation but anything put intp the smsf could be a contribution. If this takes one over the contribution caps it could have serious tax consequences.
Sorry for the spelling. Just travelling from laos to thailanf via car.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Whole new application I am afraid. Many things to consider too besides the rate.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thejajco wrote:NigelThe mortgage is $60k. Will it affect my credit rating here in Australia? I thought they were not international.
Thanks
John
Yes in some instances. It wont show up on your credit file but some lenders specificall ask questions around being in default.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Peanut wrote:Hi All, thanks for your responses. I haven't read Janmor Nominees yet. I will do so this weekend.
What about expanding on Terry's idea and what about I sell my half of PPOR to my wife now (gift it). Then when we move into the investment property in three years, she can sell 100% of the property back to me, I borrow 80%, then wife uses the funds to payout the investment property loan. (I still need to read the case, maybe I don't have to do this).YOu have to seek legal advice before implementing this as sounds like domonant purpose is a tax advantage
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
s0805 wrote:Terryw wrote:In vic it is possible for one spouse to sell to the other at full market value. So the other spouse could borrow to buy half the property. This would release cash which could be used to pay for the new PPOR.Hi Terry,
In VIC, does it only applied if both spouses name are on title initially, how about if only one spouse name on title for few years and then one spouse decides to see full 100% ownership to another spouse…..In that case stamp duty and CGT gets applied?
cheers
S0808
Any transfer between spouses
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I've never heard of court orders like that. Do they prevent you from entering bankruptcy, but what about someone else initiating the bankruptcy proceedings?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If you have an option of the property then you will have an equitable interest in that property and could therefore probably be ok – but seek your own legal advice on this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Anthony K wrote:Hi MkBonlineNow I am going to upset some people but thats how it is sometimes. Lawyers tell you it's illegal to give legal advice if your not a lawyer – that is simply not true.
The truth is this: – IT IS ONLY ILLEGAL IF YOU CHARGE FOR IT !
This is simply not true.
Only a lawyer with a current practicing certificate can provide legal advice. In NSW the relevant legislation is s 14 of the Legal Profession Act
http://www.austlii.edu.au/au/legis/nsw/consol_act/lpa2004179/s14.html. Not charging a fee is irrelevant.Anthony, have you any references to back up your claim? When you raised this issue before I challenged you and you did not reply.
Incidently, setting up a trust entails the provision of legal advice. Only lawyers can set up trusts.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Anthony K wrote:Hi Peanut/Catalyst and AllDo not listen to the ATO BS
The last case on this was in 1987 which the ATO LOST !!!!!
Go read Janmor Nominees – this case is still THE LAW.
FEDERAL COURT OF AUSTRALIA
Re: COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA
And: JANMOR NOMINEES PTY. LTD. (AS TRUSTEE OF THE J. REDMAN FAMILY TRUST)
Nos. VG386 and VG387 of 1986
There are also some ATO Rulings which are helpful.
If you cant find the case email me and I will send you a PDF copy.
Anthony
From memory Janmor involved living in a home that was owned by a trustee of a trust.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au