Catalyst wrote:

That's why I got you to do mine Terry.

Well, I hope it won't be needed for many years. And, I wonder who you really are Catalyst????

Wonder how SMSF trustees ended up investing in these. Wonder what sort of commissions were paid to advisors.

I've seen several people set up trusts incorrectly. They thought they may save money by doing it themselves but each time it has resulted in tens of thousands of dollars in lost tax, legal advice etc to fix.

A miight be better to sell the land to his builder friend after the house has been knocked down because the value would be lower – probably wouldn't work out if you were intending to finance it etc.

I’d get some legal advice before doing this

What probably happened was that money had been built up in the trust by investments etc and this money was lent to them as beneficiaries. This is hardly tax avoidance. If I lend a friend money it is not tax avoidance so why would this be tax avoidance?

I am a solicitor specialising in wills and estates and CRJ is pretty much correct above.

A will can be changed anytime, providing the person has capacity to do so. When you do your will you should probably conisder that there may not be an opportunity to change it. It may also be partially changed by doing a codicil which is like an annexure. You wouldn't normally do these, but if there is a possibility that the will could be challenged because of capacity it may be better to do this so the main part would be less likely to be challenged.

The person making the will must sign in the presence of two witnesses who should not benefit from the will. If a will is redone you don't need to have the same witnesses.

You should also consider setting up a discretionary trust in your will – testamentary discretionary trust as there are considerable asset protection and tax advantages for those you leave behind.

Wait – are these good investments? What is the return after expenses. Would you be better off  putting your money in the bank?

What is the CG or loss potential? Think of the opportunity cost. tying up your money. Could you use a SMSF?

Think about other entities lending you the money too.

I have a friend who repossess property for the banks and he is saying that a lot of the lenders are giving much more breathing space to people defaulting now because they are worried about repossessing too many properties at once.

Prob not a good idea, generally, to own appreciating assets in a company – 30% flat tax, not CGT discount and inflexible. What about all the franking credits with shares? Would largely be wasted.

I would look more closely at trusts.