Property structures - Family Trusts?

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Kiasu
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@kiasu
Join Date: 2003
Post Count: 10
January 14, 2004 - 12:12 pm
If you have more than one investment property what is the best way to structure them to safe guard your investment?
I was advised that I should have more than one family trust if I purchase a few houses and not have them all under the same trust. E.g. [8D]Family trust No. 1, 2 etc.
[8D]
The DIY Dog Wash
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@the-diy-dog-wash
Join Date: 2003
Post Count: 696
January 14, 2004 - 11:42 pm
Hi Kiasu
Depending on what your plans are … ie: if you are planning to have many properties then a family trust is a good idea. Multiple trusts help you to minimise land tax, as you only pay tax in the entity they are owned.
I do reccommend you get hold of Buyer Beware by Steve McKnight AND Trust Magic by Dale Gatherum Goss. BB can be purchased throught this forum at the resources section and TM can be purchased through API Magazine.
Cheers
Leigh K[]
Carve your own path and lead the way …
Still in School
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@still-in-school
Join Date: 2003
Post Count: 1,844
January 15, 2004 - 12:10 am
Hi Kiasu,
Depends on exactly what you want to achieve and depending on what type of property investment you want to purchase.
The main trustes that are out there for property are:
Family Discretionary Trust
Hybrid Trust
Unit Trust
Property Trust
Multi-Sector Trust
Cheers,
sis
People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million
melbear
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@melbear
Join Date: 2003
Post Count: 2,429
January 15, 2004 - 8:54 am
You can also obtain Trust Magic direct – from http://www.gatherumgoss.com
I too have been told to spread out the properties into several trusts, but something in Trust Magic suggested that was unnecessary for asset protection, but as Leigh said, could work for land tax purposes.
Cheers
Mel