Partnership – JV – Unit Trust & Discretionary Trust as Trustee

Hi All,

First time here, I have been reading a lot about the trust structure but would still have some questions to clarify, I would still go to a laywer/Accountant, but would like to know what is the correct thing before I go, as I am loosing faith you get told the best thing in your favour unless you have done your own homework and you are really lucly to find some very experienced legal asdvisor/Accountant.

We are 3 individuals (each has a family) who would like to establish a property investment together. idealy purchase … build new duplex and rent out, with the new equity, we borrow again, build and rent our and so on.

Mr A, Mr B, and Mr. C with 33.33% each,
Mr. A has enough cash and enough money in equity
Mr. B has enough enough money in equity, not in servicing
Mr. C has good servicibility, not much equity.

We think the best structure for 3 of us is to creat a Unit Trust with decided 33% for each individual, the Unit Trust buy the land, where Mr. C now repay the bank loan untill building is complete and rented.
Mr. A and Mr. B take loans against their properties/Equity/Cash and lend it to the trust or directy fund the construction, which would become their Shares then

The Unit Trust is then owned by 3 discretionary Trusts, one trust each, so each individual can distribute the profit from the unit trust withing his family as he needs, and also to protect perosnal assets …. does this then requir a company with Pty on top of the 3 DT? so the structure become a Company with Pty Ltd owns 3 x DT for the 3 Individuals and each DT owns 33% of the Unit Trust …. does this make sense or we are going to $$$$ structure that is not required and does not make sense?

Will Mr. C be able to claim negative gear from time they purchase the land to time construction is complete and there is a positive income?
Will Mr. A and Mr. B be able to claim lost of interst when they directly fund the construction or lend the money to the Unit Trust?
Who will be borrowing the money for the land? the unit trust, or the 3 x DT trust or the Company on top of all? and would then liability be on the company not on individuals?

Any advise who in Perth specialise in this to do the Deeds, I would still appreciate you feed back on what you know is the most correct structure

Thanks in advance.

Regards

HM