DT Questions?

You will need to set up a written loan agreement between the person lending the money and the trustees of the trust. Probably best to transfer it to the trust bank account first.
Most trust deeds allow a company set up later to be a beneficiary, so you may be able to save some fees by waiting a bit to set it up until you need it.
The company will have a profit which it then pays tax on and distributes the left over to the shareholders – who may then have to pay more tax.

The company could also retain profits and these could be used for further investments by lending the money to the trust. But check everything with your accountant as there are strict rules in this area.

Terryw
Discover Home Loans
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I believe any sort of business requires an ABN, including trusts. With shares its similar to property, you just open an account in the name of the trustee and the trustee buys and sells shares.

There are some extra tax rules with dividends and discretionary trusts. After a certain amount, the trust may need to make a family trust election. Once it has done this, the trust can only distribute to direct family members. Since this restricts things a fair bit, it might even be a wise move to start a different trust for your shares, depending on how many you intend to hold.

Best to check this with your accountant as these rules are complex and have recently changed.

Terryw
Discover Home Loans
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