I currently owe $50,000 on my family home and own outright a small investment property which is in my name.
I don't understand what a trust structure is? Can anyone explain it to me please? Is there a difference between personal trusts and or unit trusts?
Is it only done prior to purchase or can I transfer this owned property to a trust?Goodenergy,
There are a number of topics on this site that cover descretionary trusts and unit trusts. Try searching. Transferring the property into a trust may have some tax implications that you might want to discuss with an accountant.
Cheers
Transferring any property into a Trust Structure or any other entity for that matter will have both a Stamp Duty and possible CGT implication.
Whilst there are numerous benefits for wanting to hold property or assets in general in Trust you need to weigh up exactly what you are trying to achieve first so that a clear plan of progression can be mapped out.
Feel free to ask any particular question and we can all try and answer it for you.
Richard Taylor | Australia's leading private lender
goodenergy wrote:I currently owe $50,000 on my family home and own outright a small investment property which is in my name.
I don't understand what a trust structure is? Can anyone explain it to me please? Is there a difference between personal trusts and or unit trusts?Discretionary Family Trust – ambigous ownership of assets – determined by capital introduced or the beneficiary loan accounts – benefit discretion of trustees on how to distribute income.
Unit Trust – ownership determined by who owns the units in the trust – distribution determined by who owns what proportion of units in the trust.
Which better? Depends on purpose and many variables – should consider various issues, income, estate planning, risk management, tax etc.
Is it only done prior to purchase or can I transfer this owned property to a trust?Property transferred to trust is considered a CGT and Stamp duty trigger event
WA has given an explanation of 2 of the 5 main types of Trust structures.
Consult a qualified adviser prior to taking any action.
Richard Taylor | Australia's leading private lender
A trust is where someone holds something for someone else. The easiest way to understand the concept is to think of a parent opening a kids bank account. The parent is the legal owner, but the beneficial owner is the kid – the parent (the trustee) just operates the account for the real owner (the kid as beneficiary).
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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