What probably happened was that money had been built up in the trust by investments etc and this money was lent to them as beneficiaries. This is hardly tax avoidance. If I lend a friend money it is not tax avoidance so why would this be tax avoidance?

I am a solicitor specialising in wills and estates and CRJ is pretty much correct above.

A will can be changed anytime, providing the person has capacity to do so. When you do your will you should probably conisder that there may not be an opportunity to change it. It may also be partially changed by doing a codicil which is like an annexure. You wouldn't normally do these, but if there is a possibility that the will could be challenged because of capacity it may be better to do this so the main part would be less likely to be challenged.

The person making the will must sign in the presence of two witnesses who should not benefit from the will. If a will is redone you don't need to have the same witnesses.

You should also consider setting up a discretionary trust in your will – testamentary discretionary trust as there are considerable asset protection and tax advantages for those you leave behind.

Wait – are these good investments? What is the return after expenses. Would you be better off  putting your money in the bank?

What is the CG or loss potential? Think of the opportunity cost. tying up your money. Could you use a SMSF?

Think about other entities lending you the money too.

I have a friend who repossess property for the banks and he is saying that a lot of the lenders are giving much more breathing space to people defaulting now because they are worried about repossessing too many properties at once.

Prob not a good idea, generally, to own appreciating assets in a company – 30% flat tax, not CGT discount and inflexible. What about all the franking credits with shares? Would largely be wasted.

I would look more closely at trusts.

Jac,

Agents cannot insert clauses in contracts. These are legal documents and can only be drafted by lawyers/Conveyancers. In NSW agents are only allowed to fill in the area in the box on the front page – names addresses, price, inclusions etc

Its not necessary to make a formal offer, but it is a sales technique to lock you in and to present to the vendor that they have 'found a buyer'.

Remember if the other side gets a hold of this contract it would be legally enforceable against you. I wouldn't sign until getting a lawyer to review it either.

If the mortgage is across both titles could it be split up? Just thinking if your bank doesn't come to the party then you could move part of it.

Also if you are living in one property can this loan be separated and split off? Possibly not by the sounds of things, but if it could then this would be a way of paying off the non deductible debt first.

Anyway, generally, I would set up a new LOC on the property and then when borrowing to buy future property you would take the deposits from this LOC and get 80/90% loans for the new property from a different lender. If you want to use the LOC to pay expenses or interest then you need to be very careful and seek tax advice first.

Who is the owner of the holiday units? ie what entity?

If some problem were to arise you may find youself in a tribunal or court and you could have the texts admitted as evidence. I wouldn't rely on them too much though, especially not for contractual matters.