Hi Guys
I would love to know If I set up a family trust to purchase property in Melbourne,can I include my father into the trust?(he is not an Australian Citizen)
Is this possible ?
thank you in advance.
Do you mean as a beneficiary? Yes you can, as long as the deed allows it. It will usually allow parents, spouse, kids etc of the primary beneficiary. Just make sure that the deed does not disallow distributions to non-residents. (I don't think it's a common clause, but best to be on the safe side).
You may need to check with the FIRB as to whether your father can be a trustee of the trust. I would think that if you are both trustees, then this would be ok, but it's just my gut feel. You'll need to check this out.
Another thing to consider is that any distributions made to non-residents triggers a withholding tax.
Hi Terence
In what capacity would you like to involve your Father? Appointor, Guarantor, Trustee, Beneficiary, etc? If it's as a Beneficiary then I don't believe he has to be an Australian Citizen. However, as always, check with your accountant/solicitor.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
You can include anyone as a beneficiary – but there are taxation issues that need to be considered if money is distributed to a non-resident (for tax purposes) as they get no tax free threshold and pay a higher rate of tax.
You probably should not put a non resident as trustee as you may have problems with the trust being controlled by a non-resident and therefore needing FIRB approvals etc.
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 for the information. reading this has made it so much clearer.
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