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  • Profile photo of tlnsrqtlnsrq
    Member
    @tlnsrq
    Join Date: 2005
    Post Count: 3
    Originally posted by Cata:

    Originally posted by tlnsrq:

    I

    1- Is it worth considering a Hybrid Trust for the purpose of investing in shares?

    Yes

    2- If I borrow money (100K) to buy units in the Hybrid trust (100 units) and the money is invested in property or shares, then ALL income produced have to be distributed back to me. Can somebody confirm that?

    At the absolute discretion of the trustee

    3- What happen when the value of the investment increase (say become 200K), will ALL income be distributed back to me as the units holder or can I distribute back only part of the income to myself which is proportianl to the original value of the units 100K? I have read some opinions that say that this is achievable so that the rest of the income can be distributed to low income beneficiaries.

    At the absolute discretion of the trustee

    4-When the investment is sold will capital gain be distributed to me (units holder) or can it be distributed to other low income beneficiaries.

    At the absolute discretion of the trustee

    5- what happen when the investment become positive geared, (income exceed interest). How can I divert the excess income to other low income beneficiaries instead of having it directed to me as the unit holder.

    At the absolute discretion of the trustee

    6- When and how the actual income units get created, is it when I purchase an investment or is it at tax return time.

    A minute entry for most deeds

    7- Can I have overseas non resident relatives as beneficiaries and what would be the tax treatment then, as in how much witholding tax should the trust pay.

    Trust pays no tax, beneficiaries pay tax where they are residents

    8- For the type of investment I want to do, shares and property, is there any value of having a company as a trustee as opposed to me as a trustee

    Yes Yes Yes

    9- If I setup the trust with me as a trustee and appointer initially, can I change the trustee later to a company.

    Yes

    Should the company have to be created BEFORE the trust has been setup or can the company be created after the trust has been setup and then have it appointed as a trustee?

    Better to do it at the same time

    10- Should I move the family home to the trust from an estate planning perspective or is there some other structure that is better.

    No, there is better options available

    11- FInally does anybody have recommendations for an accountant in Sydney that can setup and maintain this structure.

    Not that I know of.

    I hope this helps

    CATA
    Asset Protection Specialist
    [email protected]

    Profile photo of tlnsrqtlnsrq
    Member
    @tlnsrq
    Join Date: 2005
    Post Count: 3
    Quote:
    Originally posted by Cata:

    Quote:
    Originally posted by tlnsrq:

    I

    2- If I borrow money (100K) to buy units in the Hybrid trust (100 units) and the money is invested in property or shares, then ALL income produced have to be distributed back to me. Can somebody confirm that?

    At the absolute discretion of the trustee

    3- What happen when the value of the investment increase (say become 200K), will ALL income be distributed back to me as the units holder or can I distribute back only part of the income to myself which is proportianl to the original value of the units 100K? I have read some opinions that say that this is achievable so that the rest of the income can be distributed to low income beneficiaries.

    At the absolute discretion of the trustee

    Does that mean that as a trustee I can divert the income to a non unit holder? would I still be allowed to claim the interest back on my tax return (as a unit holder?)

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