I have quite a few posts in my history about trusts. Also TerryW.
They are quite complex but as your learning think of it as a big story with heaps of differing lines and you will understand after a while.
Trustee, beneficiaries, appointers, executors, ect have different roles, powers and responsibilities.
Or buy yourself a book on trusts or…[Read more]
No right to income? I don’t understand how a beneficiary of a discretentary trust can have no right to income.
Beneficiaries receive income from the trusts. Do you mean they CAN receive income at the discretion of the trustee but do not have a RIGHT to it?
The beneficiaries have no influence or control over these decisions in a discredentary trust. ??
Ok I understand we would need to pay to set up both a standard trust and SDT. This is worthwhile due to the savings.
I just want to make sure we don’t spend money on things which are not nessasary.
Considering the fact person C has an spouse relationship with person A it is nessasary to consider C as a standard trust beneficiary
to prevent C…[Read more]
Back to my previous question.
According to this division the SDT can only have a single beneficiary. So in this instance I need to explain to person A to create a standard trust for person C to become beneficiary. Also to create a SDT for myself (person .
Is this not expensive?
Every trust costs money to create and Im wondering if…[Read more]
Could you send me a link of that social security act? I myself am going to consider applying to be in a SDT after I convince person A to do it.
Centrelink gave me three criteria which I know I can pass two but the third may be a little grey. It’s about being severly disabled and not independent and needing a personal carer 24/7 which may be a stretch.
Setting up these sorts of structures is often difficult due to social conflict.
In this case person C is jelous of person B so person A needs to understand how to consider both beneficiaries to keep the peace.
Istvan051 9 years, 5 months ago
What if you have an investment house worth 700,000 then how do I insert 578,500 only into this?
Possibly you could transfer a % to the trustee of the SDT and yourself as tenants in common. But then you have to watch out for capital growth down the track.
Yes, this is why this disability trust stuff is a…[Read more]
Yes, the beneficiaries would have the same tax rate, true.
BUT, all DSP pensions are tax exempt. This means if I have a $20,000 pension and no other income my taxable income is 0.
If I then become a beneficiary of a trust and get paid 6000 in the first year I pay no tax still. Once I earn over 6000 from this I start paying…[Read more]
So if DSP is 700 per fortnight then you will get 18,200 per annum. This amount is tax exempt and does not form part of your taxable income.
If you are involved with a trust and receive income and DSP then you will pay tax on your trust income only. But this will reduce your DSP payments on a sliding scale.
If you are involved as primary…[Read more]
Capitalism is about competition and greed. I see it is true capitalist countries progress faster than all others. In my opinion why is this?
Greed is the desire for more than what you need but is also a powerful emocion which can push the human brain to it’s limits of creativity and innovation. This means capitalism is responsible for driving…[Read more]
I think greed is a great insentive to go to work, a great insentive to do great or poor things and a great insentive to act responsonability or irresponsibly.
The bottom line is that greed gets things done!
I also believe this is the insentive you speak of but you think it is only present in a traditional capitalist setting in which people are…[Read more]
In true socialism nobody has to take risk as nobody personally owns the means of production. This is owned by government.
Everybody would be given a job based on the requirement for jobs but would be paid an equal share of profit by government.
Every person should be allowed to potentially have wealth and stop working whenever they are able by…[Read more]
Yes, the model also includes private living quarters adjacent to the child’s living quarters. So imagine the building where the children live then ontop of the business next to this is myself and my wife’s private quarters.
Interdependence basically means we acknowledge that we are both very independent people keen on building an interdependent…[Read more]
In this, the child/ren may perhaps pay rent to the trust from money they get from being a beneficiary or being employed. This would be rent to help fund their own accommodation inside the business.
This is because the family trust owns the property and the trust is a financial entity in itself which can come up with loses or gains.
If I own a…[Read more]
Yes, well we can work in the same company which is owned by a family trust but the company would have two departments in which each of us work.
According to you beneficiaries do not “work” for money. Employment of children by the company is different from being a beneficiary I get it. I wonder if tax implications are different for beneficiaries…[Read more]
So the trust would own property which I called the “business” in which myself and my wife call “work” and the children live full-time.
I would be able to have my own house and my wife is also able to have her own house but only one of us is able to get CGT exemptions as the main residence as the second house would be seen as investment.
I may pay…[Read more]
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