Hi Everyone,
Rather than buying an investment property in my name I want to set up a trust and then have the trust own the property.
However I am currently single with no children and my understanding is that you can't have a trust with yourself as the beneficiary. If I buy now in my own name and then set up a trust later I would have to sell to the trust and this would trigger CGT plus stamp duty and the other costs.
Is there a way to set up a trust with one person as a beneficiary?
Also can anyone recommend a good accountant in Perth who specialises in property?
Thanks.
A trust with one beneificiary is possible. It is called a bare trust – but the trustee cannot be the same as the beneficiary, otherwise it wouldn't be a trust.
Discretionary trust deeds are worded in such a way that future children, spouses, step children, step parents, future spouses new spouse (eg. if you later marry and then divorce and your spouse remarries) are all covered. They don't have to exist now, or even be alive now.
So even if you are on your own you can set up a discretionary trust and have hundreds of potential beneficiaries.
Also consider that a company you have shares in or a director of can be a beneficiary, as can charities.
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
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