I am selling my property to my trust. I am doing this as the house next door is for sale, so i thought it would be a good idea to put them in a trust now. As i plane to knock them down in 4-5 years to build unit. Also my current property will be positively geared.
Any way i am talking to a guy from rams about finance, so far he is very helpful, and seems to know what he is taking about.
Though posts that i have read on the internet have been pretty negative, although these are also very old.
Can any one help, are they any good. Or at least usable, and what issue do they have. Is it a risk. Or just a standard mortgage.Thank You all
Please seek legal advice.
Gifting to a trust may result in no asset protection if you were to go bankrupt.
I haven't written a loan with RAMs for a few years, but they used to be ok with trusts.
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
terry, what about if it is done with a sales contract, i wont be giving it to the trust, i will be seling it to it. all im doing is lending the trust the deposit.
Under the Bankruptcy Act sales can be reversed. 5 years if a genuine sale or no time limit if you are doing it to defeat creditors.
So it is not safe to do from an asset protection pov.
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
Im only doing it to start building upa property portfolia in our trust, and company. I earn a larg wage, and my partner doesnt, so i saw potential in structuring it this way, as we can distribute most the funds to her at a lower tax rate, and 3000 to our son. And dont pass on much to myself.
The property will be positively geard sso i thought this structure would be of benifit. Is it unsafe to sell it to a trust.
You should seek legal advice first. It may be better to keep the existing property as is and then get a new one in the trust.
Yes, it is unsafe to sell your own property to a trust.
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
Actually it is generally safe and will probably be safe in your situation – but there could be circumstances where it is unsafe. Its best to be safe than sorry.
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
Thanks Terry
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