All Topics / The Treasure Chest / Diff Discretionary Trust and Hybrid D T?

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  • Profile photo of JetDollarsJetDollars
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    @jetdollars
    Join Date: 2003
    Post Count: 2,435

    Dear All,

    I am in the propess of setting up Trust for my investment structure and would like to know:

    1. what is the different between discretionary trust and Hybrid Discretionary trust?
    2. What is the disadvantage and Advantage?

    Any input would be appreciated.

    Cheers

    Chandara

    Profile photo of paulthemagnetpaulthemagnet
    Member
    @paulthemagnet
    Join Date: 2003
    Post Count: 27

    Chandara, visit Chris Batten’s web site. You will get some idea about the structures.

    http://www.chrisbatten.com.au

    Advantage/disadvantage, i think it is all depends on individual circumstances.

    Ta, Paul

    Profile photo of JetDollarsJetDollars
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    @jetdollars
    Join Date: 2003
    Post Count: 2,435

    Paul,

    Chris Batten website is invaluable. Thanks, but it does not tell me the different between discretionary and Hybrid discretionary trust.

    Chandara

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Chandara

    There are actual trust deeds for both trust types on Chris Batten’s site. I hybrid is a mixture between a Discretionary trust and a Unit Trust.
    But there are 2 types:
    Hybrid Discretionary Trust, and
    Hybrid Unit Trust
    I am not sure of the difference between the 2.

    You also should beware of cheap immitations. Apparently there are accountants out there offering poor quality hybrid trust deeds.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of JetDollarsJetDollars
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    @jetdollars
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    Post Count: 2,435

    Thanks

    I have to speak to my accountant about this soon.

    Chandara

    Profile photo of ARWARW
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    @arw
    Join Date: 2003
    Post Count: 21

    I think the term ‘hybrid’ in relation to trusts just means a trust that emcompasses more than one type of trust (i.e. if you amend a Unit Trust which is fixed in nature to make it discretionary, then you’ve made a Discretionary Unit Trust, which can also be called a hybrid trust cause it is a combination of two different types of trusts). That’s my understanding of it anyway – hope that makes sense.

    The two main types of trusts for these purposes would be:

    (A) Family/Discretionary Trust; and
    (B) Unit Trust (which has fixed unit entitlements and is not generally discretionary).

    As far as advantages/disadvantages, there are so many ways to set these trusts up and so many different reasons as to why you’d have what structure – so sit down with a good accountant who can advise you on the best structure for your circumstances.

    Cheers

    Profile photo of JetDollarsJetDollars
    Participant
    @jetdollars
    Join Date: 2003
    Post Count: 2,435

    Thanks Alana, really appreciated.

    This forum as soon as you pop the question there’s alway answers.

    Chan$

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