Hi all!
Just a quick question regarding financing through Hybrid Trusts.
I am currently going through ANZ to approve an equity loan ($130K) (with my PPOR as security) as well as a pre approval for $280K with the future IP as security.Our PPOR loan is in both names.I have requested that both loans be in my name only (for max.tax benefit through the hybrid trust).ANZ are saying that they require my wifes name on the loans as well although she has signed as the guarantor.Is this normal -is there a way around this scenario??
My current salary is $65K and wifes is $62K.Any remarks will be appreciated.KLH
Cata would be the best person to answer, however, I thought the benefit of the HDT would be that you can distribute the income to the beneficiaries as you see fit. So your wife’s name as guarantor or on the loan shouldn’t be a problem??
[medieval]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Herselman
I think the question isn’t financing through a HDT but one for a finance broker. I do not understand why your wife being guarantor is a problem.
I see the problem not in the trust but with the lender.
Maybe a broker can help.
CATA
Asset Protection Specialist
[email protected]why isnt the loan in the trust name to begin with? Or are you making a loan to your trust?
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582To buy units in the trust I think.
CATA
Asset Protection Specialist
[email protected]Your wife would have to be on the home loan as she is on title.
With the trust, the loan would usually need to be in the trust name with guarrantees from the trustee (or directors of the trustee company). So this would depend on how you have set the trust up.
ANZ have recently caused problems with one of my clients with a HDT – They refused to put the loan in the person’s name (director of the trustee).
It seems they sometimes do and sometimes don’t.
If you wish to maximise tax benefits, maybe yourself and your wife could enter into a loan agreement with yourself or your trust. SO you wboth borrow the money from ANZ and then on lend it to the trust/trustee. that way interest deductibility may be transfered.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by Terryw:Your wife would have to be on the home loan as she is on title.
With the trust, the loan would usually need to be in the trust name with guarrantees from the trustee (or directors of the trustee company). So this would depend on how you have set the trust up.
Hi Terry, I believe one of the knowledgeable trust accountants prefers the loan in the individuals name and the Hybrid Discretionary Trust (with Pty Ltd Trustee)as gaurantor (though I guess each situation is different).. Some Trust advisors prefer a normal discretionary trust and company
ANZ have recently caused problems with one of my clients with a HDT – They refused to put the loan in the person’s name (director of the trustee).
I’ve heard Bankwest are easy to deal with re: Trusts and Investing?It seems they sometimes do and sometimes don’t.
If you wish to maximise tax benefits, maybe yourself and your wife could enter into a loan agreement with yourself or your trust. SO you wboth borrow the money from ANZ and then on lend it to the trust/trustee. that way interest deductibility may be transfered.
I thought this was a good option, you buy units in the HDT and it repays the loan (would it repay at a commercial rate say, a% higher than the other loan?)Terryw
Discover Home Loans
North Sydney
[email protected]“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Redwing
With a HDT the loan needs to be in the individuals name for them to claim the tax benefits. So far I have seen 2 clients with HDT in place, but they had the loan in the trustee company’s name – unaware.
If it is not a HDT, then I am not sure if it would matter whose name the loan was in, from a taxation point of view anyway.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
