I am interested in building a property portfolio but before I go too far I thought I’d try and get some information about how to go about setting up a family trust and the benefits – I believe it can save tax but I don’t understand how you get your money out.
Dianne Mitchell
The simple answer to ‘how do I get the money out’ is that a trust distributes its profits whenever it wants to or at least at the end of the financial year.
It discretionary distributes its income to any beneficiary ar its “discretion”- this year it may be to you, next year it may be to your kids.
A unit trust must distribute the profits in proportion to the units owned by the unit holders.
Passing on the profits is the easy bit.
There’s lots more to trusts- speak with your accountant
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auHi Dianne,
If your like me you have to read and re-read peoples replys and advise to be able to understand it.
I can’t recommend Wealth Creation enough to help you with your question. Its simple to read and will answer many more questions including how do you get your money out.
I hope this helps.
Goodluck
Kind RegardsPaula
Dianne
You can lend money to the Trust to get started and pay back the loan from profit. As well, as suggested, you can distribute profits to beneficiaries.
I’d recommend you talk to an expert – see our site, we have links and info re structuring.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing, Structuring and Developing Information Hub.Dianne,
I did the exact thing you’re talking about. MOst Accountants can do this for you and explain all the benefits
LukeSpeak to a lawyer in this area as well.
Originally posted by LukeNeale:Dianne,
I did the exact thing you’re talking about. MOst Accountants can do this for you and explain all the benefits
LukeThere are numerous types of trusts and ‘most’ accountants IMHO don’t have a clue !
You need to ensure you speak to one who is well versed in the different types of trusts, better yet, gain some knowledge yourself so you know ‘what you want’, as accountants mostly act on the information you give them.
Do you want a family trust or a discretionary trust, hybrid discretionary trust, unit trust, bare trust etc etc..?
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