You should seek legal advice first. It may be better to keep the existing property as is and then get a new one in the trust.Yes, it is unsafe to sell your own property to a trust.

Thanks Dan. Being bare hides everything!

For a start you will have to get approval from the lender and the mortgage insurer.Then there are maximum exposure leves, lenders mainly all using the same insurers etc.

Under the Bankruptcy Act sales can be reversed. 5 years if a genuine sale or no time limit if you are doing it to defeat creditors.So it is not safe to do from an asset protection pov.

Any lender would look at the credit report of the guarantor too. So transfering it would not really help your situation. Bad credit generally only lasts 5 years on your record so it may even be gone by now. Maybe get your husband to get a copy of his credit report from http://www.vedaadvantage.com.au

And there should only be nominal stamp duty to put the title into the farmers name and no CGT consequences.What happened to the opening post?

What you could do is to borrow money to pay expenses on the investments. This will free up cash you would otherwise have used and this cash could then be used to pay down the new PPOR loan (or into the offset).Talk to your accountant about borrowing to pay interest.

Low doc loans generally require at least 2 years ABN and GST registration if your business is turning over $75k pa. These days they are also often asking for bas statements too – to make sure what you are declaring is similar to what you are telling the ATO what you are making.

Please seek legal advice.Gifting to a trust may result in no asset protection if you were to go bankrupt.I haven't written a loan with RAMs for a few years, but they used to be ok with trusts.

Google shows it comes from a NZ site:http://www.familytrusts.co.nz/family-trusts/family-trust-gifting/

Hi Steve, What country is that from?I have never heard of gift duty before.

All of their loans are mortgage insured – which could create problems down the track.

Hi SteveYou can't have your cake and eat it too I am afraid.In NSW the office of state revenue classes trusts into 7 different categories. If one of the trusts falls under the definition of a special trust then the threshold doesn't apply. They would be taxed on land values at $1 up.If your trust is classed as a fixed trust then the land tax…[Read more]

Also interesting that the financial planner's trust is buying it. Basman do you know of any relationships, friendship, business etc, between the fin planner and the husband?BTW, there is no requirement for a beneficiary to be named on the trust deed. You could get your hands on the deed and his name may not be listed anywhere yet he could still be…[Read more]

hi BasmanInteresting.I guess the wife is not on title? And you think he is trying to sell it before the family court can make an order.I would suggest you get your sister into a lawyer asap and slap a caveat on the property. She should be able to do this under the family law act. If the new buyer hasn't put a caveat on themselves, then she may be…[Read more]

Another point – if you have $100,000 to lend to a trust then this is already available to potential creditors. But tying it up in a trust makes it more complicated and possibly less likely that someone will a) notice it and b) go after it.

Yes, Dan it is hopefully only temporarly also.There may also be additional methods available to protect any personal equity.

Plummer wrote:
Richard,I have had a read through the infamous "Page 174 of Steves Book 0-130 Properties etc" thread and am still a little confused about the whole thing and would really appreciate your opinion as I need to make a decision about this shortly.Scenario:I purchase IP1 in Trust A and personally guarantee the negatively geared loan.I…[Read more]

hi SteveYes you could do the tax returns yourself if you understand it (and the deed allows it) but it is complex, especially if there are losses. You may need to consider things such as family trust elections.I think you may be able to use accumulated income losses to offset capital gains – but this may depend on the wording of the trust deed…[Read more]

Hi BankerI think it is a bit of a myth myself.