Beneficiary using equity in a trust

Viewing 5 posts - 1 through 5 (of 5 total)

BlueBeam
Participant
@bluebeam
Join Date: 2012
Post Count: 1
September 3, 2012 - 1:53 pm
Hi All,
Very new here so hopefully not a silly question!
Can a beneficiary of a discretionary trust use equity from property held in that trust to use for their own IP in a new separate trust?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 3, 2012 - 9:27 pm
Yes, if the deed permits.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
christianb
Participant
@christianb
Join Date: 2009
Post Count: 386
September 4, 2012 - 12:55 am
Terry, is this some sort of third party equity?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 4, 2012 - 1:15 am
The equity would belong to the trust so it would be third party from the beneficia
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 4, 2012 - 1:22 am
Yes. Third party from the beneficiaries point of view because they are using someone else's equity
This could be done by the trustee borrowing and I lending money or the beneficiary borrowing and using the trust property to secure the loan.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au