To trust or not to trust?

Viewing 7 posts - 1 through 7 (of 7 total)

wakebrownb
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@wakebrownb
Join Date: 2011
Post Count: 44
February 27, 2013 - 9:36 am
I have one IP and my PPOR which I purchased in my own name before I met and married my wife. Going forward we want to add to our property collection and I need advise on how to set up the portfolio. I earn substantially more then her hence I figured in my name would be better but then I read about trusts, unit trusts, companies etc…..what are reccomendations from forum regulars on this?
TheFinanceShop
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@thefinanceshop
Join Date: 2012
Post Count: 1,271
February 27, 2013 - 10:29 am
Its really a question for your accountant, what the picture will look like in the future, asset protection, land tax, etc.
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Shahin
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Jamie Moore
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February 27, 2013 - 11:16 am
Don't forget a lawyer as well.
Trusts have their pros and cons – make sure you consult decent professionals who will provide impartial advice on what's right for you.
Cheers
Jamie
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Terryw
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February 27, 2013 - 11:33 am
Because of the land tax issues, I would tend to favour buying in your personal names with planning on which names to use first.
If there are asset protection issues then a discretionary trust. If the land is in VIC a personal name should be considered first because of the stamp duty issues on spousal sale strategy, but other states maybe a fixed unit trust because of the flexibility.
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Richard Taylor
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@qlds007
Join Date: 2003
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March 1, 2013 - 1:01 pm
As Terry mentioned Fixed Unit Trust but remember that is far reached to a HDT.
Wont get 95% lvr easily in a HDT without paying for it.
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Yours in Finance
Richard Taylor | Australia's leading private lender
RPI
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@rpi
Join Date: 2012
Post Count: 308
March 2, 2013 - 9:53 pm
Asset Protection is a question for your Lawyer, Accountants are not supposed to give such legal advice. Ideally it should be done in conjunction with 3 people
1. Finance Broker
2. Lawyer
3. Accounantant
(not necc in that order)
RPI | Certus Legal Group / PRO Town Planners
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RPI
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@rpi
Join Date: 2012
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March 2, 2013 - 9:57 pm
From the perspective of someone who does civil litigation, buying in your own name is as dangerous, if not more so, then as not insuring you house against it burning down.
The flexibility a trust provides for distribution of capital gain on sale should also not be discounted.
BUT there are other perspectives you need to take, which is why it is a great idea to see an accountant and a finance broker also.
RPI | Certus Legal Group / PRO Town Planners
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