Hi

So you purchased land in your name for your father in law?

What is he doing with the land? You could possibly make out that you are leasing it to him, but if he is making full loan repayments, you would not be saving any tax – except maybe rates and water.

Not sure what you are trying to do??

Terryw
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Hi again Stuart

Been thinking. The trustee is legally required to act in the best interest of the beneficiaries, so there may be still some hope. And as Gross alluded to, it may not be a case of fraud or deceit by the accoutant. He may have really had the best interests of your friends in mind.

14 years is a long time, and things were certainly…[Read more]

This reminds me of Micheal Hutchinson, lead singer of INXS. While he was making big money with INXS, he had a complex structure with offshore companies and trusts with nothing in his own name. He probably had other people controlling all this – nominee trustees and directors etc.

The trouble is, his family could not get their hands on the assets…[Read more]

Thanks Stuart

It may be still suseptible to attack, but anyone doing a search would see the mortgage and probably assume there is no equity there and not go the extra steps and hopefully drop the case there. Suing someone is costly, and people generally only proceed if there is a hope that they can be some money in the end.

Terryw
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Pony, I misread your sorry: “you never lived together”? Then you have a problem and may have trouble even lodging a caveat.

You may still be able make a claim tho, better seek legal advice.

Maybe one way you could argue is your partner held your share in trust for you. Proving this may be hard but you can use the fact that you contributed to the…[Read more]

This is terrible. They may have some legal recourse in suing the accountant somehow.

Terryw
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You should be worried. Usually 13 days is not enough time to settle!

Terryw
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Andrew, These loans still show up on your CRAA. Since banks require personal guarrantees, these loans will be assessed in your serviceability (if you tell the lender about them) and creating a new entity will not help in this regard – although it may be good practice.

Terryw
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Yes, trusts can be good for this. But the family law court can unravel trusts too, so they may not be 100% effective in this area.

However, your existing assets will incur stamp duty and possibly CGT if you were to transfer them to a trust.

A way around this may be to leave as is, and to gear these properties up by having a trust take a mortgage…[Read more]

I agree that Dale’s book is worth the money. It is written in a way the average person can easoly understand.

Terryw
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Fixing loans can result in loss of flexibility. It can be much harder and costly to change banks if needed.

Terryw
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A bank cannot accept a guarrantee from you if you are not an owner of the property.

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Hi Carlin

There is a long thread on this topic on the somersoft forum and that invested (viewing is free, but need to pay to post).

I think that this trust is a unit trust with a hybrid trust owning the units. Not sure what other special features it supposedly has.

What is the cost?

Terryw
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You may very well be right. Lying on a stat dec would certainly be illegal. And there could be tax consequences ATO were to get a hold of your declaration where you have exaggerated your inocme – they might just beleive you and issue you with a notice of assessment on that income amount.

Having said that, what you describe is very common. There…[Read more]

Originally posted by carlin:

The only advantage (or difference) that I’ve read is that it allows properties in NSW to keep their land tax threshold.

I beleive this is no longer the case in NSW. The rules have changed.

Terryw
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This seems to be standard practice – charging interest on late settlements. Don’t worry too much, it is a small amount, and you would have saved a little bit in interest by having you loan start later anyway.

Terryw
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I beleive you can claim expenses if you are trying to rent out the property but cannot find tenants.

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If you buy an option over a property, then you can lodge a caveat on the title. This should prevent them from selling or mortgaging without your consent.

However, the bank can still foreclose on the property if they fail to pay their mortgage. Maybe you could ask to get copies of their monthly statements to make sure they keep paying, and maybe…[Read more]

Not sure, but guess it would be if you are forced to sell at a profit????

Out of interest, are they paying you true market rates for the land?

Terryw
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Yes, put a caveat on quickly while you sort this out. You will be able to do this as you have a family law matter. A caveat costs about $100 to put on, but you may need a solicitor if you do not understand what you are doing.

Terryw
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