My father wishes to transfer his holiday house into my name for tax reasons.
I have 1 IP and looking for more, as well as a share portfolio.
I want to establish a trust now before it all gets too big. (hopefully!)
What kind of trust will suit my situation?
Could my father then pay the trust rent on the holiday house?
I would love any advice.
Damians,
No issue to transfer the property across, however, you will be paying stamp duty on the transfer.
Depending on what type of property investments, ceratin trusts may suit better. Hybrid Discretionary Trusts suit those who would like to negative gear, a straight Discretionary Trust may suit positive cash flow investments.
Do a search on this forum on trusts and structures and you will see much discussion. Also worthwhile to do a similar search on http://www.somersoft.com.au. Ultimately speak to a professional though to guide you.
Your father could pay rent on the holiday house. What would be the advantage for your father to do that? From a tax deductibilty perspective, it would need to be at commercial rates I believe (?)….
James
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