Benny trusts cannot distribute losses but what you may be thinking of is some borrowing to subscribe to units of a fixed unit trust and the trustee using that cash to pay for the property. Those borrowing to buy income oroducing units could claim the interest against their own income. If they are individuals and the interest is less than the trust income recieved there would be a loss and this loss can reduce other income. Ie negative gearing in personal name with property owned by the trustee.

I think increasing the loan shouldn’t produce any tax issues if the loan itself relates to only the units. Once complete the loans can be split and the property strata titled At that point the security for each of the 3 splits can be secured by the unit it relates to.

Get tax advice.

Yes it is possible to structure a company or a trust so that only one of you will need to give a guarantee.

Although transferring to another entity will result in stamp duty and trigger CGT it can be beneficial – especially if there is a bit of equity that has build up.

Companies get a separate land tax threshold in most states and they can retain earnings too so they can be a great way to own property – tax can potentially be less than that in your own name.

Your step dad’s company can lend your company money and can secure this by taking a second mortgage, either registered or unregistered. This should help the company secure its debt. There should be a written loan agreement between the two companies and each party should seek separate legal advice.

You should also seek legal advice before you set up the company on how it should be structured – probably one director and the sharehold being the trustee of a discretionary trust would be worth considering.

I believe it is just a marketing term – the name doesn’t really matter. If you want asset protection on bankruptcy you should really get legal advice (from a lawyer) because the trust deed is only one part of it. The important part is how the transactions are structured.

For example if you make a ‘gift’ without anything changing hands the gift will fail at law.

See legal advice!

Why cannot she give legal advice? Perhaps because a conflict of interest. If she is operating a business selling products then she may not want to advise on those products because it could be deemed biased.

Impossible to advise on such a general question. Best course of action may be to start reading as much as you can.

Yes gift him $20k extra so you can borrow $20k extra could be a good idea – but get tax advice, especially on Part IVA

If you have $20k to give your dad why not just use that yourself?

blagger wrote:

so I pulled the pin on this within the 3 day cooling off period. Cranbourne was recommended to us by the rep at Pillar Financial Group as a growth suburb but having done my own research into the property price points it was evident that we were paying a premium at any capital growth would be non-existent.
I’ve requested the return of the 1,000 dollars – on going trough the recordings I made of the meeting it was nt clearly mentioned that the $1000 would be non-refundable. If not forthcoming ASIC will be receiving copies.

Did you record their conversations without them knowing? This could be a criminal offence.

What does the contract say about the refund of the $1000. It probably don’t matter whether they said it was refundable or not.

Department of Fair trading would be the department to complain to about this as they regulate agents and not ASIC – were you actually dealing with an agent?