She has to overcome the PSI rules but it could be possible to set up a consultancy firm.I wouldn't say it outright illegal. Usually income if it is personal services income will be taxed in the hands of the individual even if it is received by a trust or company. If you can overcome the rules you can have it via the trust.

Not an easy question to answer!Try looking at http://www.bantacs.com.au as they have a PDF document with information on this.

Or hang around the court there!

Recently I have started looking at using a unit trust to purchase property. If the property is in NSW a fixed unit trust could enable the land tax free threshold to be obtained. If could also allow you to claim interest against your personal tax return by buying units in your own name, The trust would claim any other expenses in such as…[Read more]

Sounds interesting, but wouldn't that mean you would be claiming more than 100% of the cost or value of the item.

Sorry, I couldn't help myself.

Would you sell an option to purchase the pack?

Depends on the wording of the deed again. Often deeds are worded so that if the trustee fails to make a distribution of income or if a resolution to distribute fails then the principle beneficiary may be deemed to take the income. This would prevent the trustee paying tax at the top marginal rate if a mistake happens.An executor is the legal…[Read more]

The appointor couldn't have any control over a company. It would generally be the shareholders of the company that appoint the director. Of course the same person who is shareholder could also be appointor, but these are separate roles and entitites.

If a trust only has one beneficiary then it is called a bare trust. eg. A owns X for B. B is the true owner and A is the legal owner. There is no discretion here. It is very unlikely that the grandfather's trust would have only 1 beneficiary.The grandfather's trust is probably a discretionary trust – which is what we have been mostly assuming…[Read more]

Not all lawyers know how to draft wills. Most lawyers will not have a clue. Some do not even study Succession in their degrees as it is optional. One of my friends died of cancer recently. He got his solicitor to draft the will knowing he was dying and she made at least 9 errors which could have had devastating consequences. Another friend with a…[Read more]

hi BelindaYou can get a valuation to prepare the valuation report based on the date you moved out.Stamp duty isn't tax deductible against income, but can be claimed again the CGT when you sell. You can probably claim interest on money borrowed to pay the stamp duty though.Your husband should also seriously consider using a trust structure. if he…[Read more]

IshtvanTrust assets can be deemed assets of the marriage. There are heaps of cases on this area. Austlii is down at the moment, so I cannot look up the Family Law Act, but there are sections which give courts the power to make an order on trustees. The trust income can also be considered a financial resource of one of the parties too.Wills are…[Read more]

Hi BumskinsGood to see someone else joining in the discussion. I must disagree with most of what you say however.On marriage the assets of one partner do not necessarily become assets of the spouses jointly. If there is a divorce or a separation then the Family Court can make orders to transfer assets, including that of trust assets, but until…[Read more]

If your husband is part owner then he can only buy your share, not the whole property (can't sell to yourself).You would need a valuation to be done to determine market value, cant rely on your own estimates for tax purposes.You should also get legal advice as there are many issues to consider – family law, estate planning, asset protection, stamp…[Read more]

of course

Just had a quick look at the CSA site, http://www.csa.gov.au/child_support_formula/your_income_details.phpand it doesn't mention anything about counting income from a trust you control – unless the person being assessed in receiving the income.So, on first glance, you could possibly set up a trust and distribute the income to a third party so as…[Read more]

Ah, yeah sorry. Tax free!!

It all depends on how much you have and in what form and how much you want to give to whom.It would be difficult to make it even with 2 assets like that, but it would be possible to give part of the office building to the other kid too.eg you could leave the office building in a unit trust with 75% of the units owned by A's discretionary trust and…[Read more]

ALF1 wrote:
You have now entered the Family Law Twilight Zone and it does not matter how 'smart' you think you can set up discretionary and family unit trusts, SMSF's, or otherwise, you cannot avoid your obligations under Family Law. Unfortunately, it's as black & white as that. Remember the Law can be a TURTLE and an ASS – it's SLOW and it's S…[Read more]