Hi,
I know it's possible to loan TO a Family Trust, however can you loan FROM a Family Trust to a beneficiary?
Beneficiary's intention is to invest in a property.
Any answers are appreciated.
CamMan
Do you mean 'borrow' from a trust?
A beneficiary can borrow if the trust deed allows it. Could be interest free or market rates depending on the situation.
Have a look at this article from yesterday where a trust lent $14mil to a beneficiary to purchase a house
http://www.smh.com.au/nsw/court-battle-lifts-the-lid-on-huge-wealth-of-obeid-clan-20120403-1wax7.htmlTerryw | 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,
Last paragraph of the article
"As Justice Peter Young quipped in the hearing: ''But once the court puts its own trustee in, the Obeid empire collapses.''"What does this mean? Does the court have the power to appoint a different trustee?
I think that paragraph was referring to the trustee in bankruptcy.
But a court can replace a trustee. In NSW this can be done under the Trustee Act. Just look at the Gina Reinhart case at the moment. Some of her children are trying to have the trustee (Gina) replaced.
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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