AALLII wrote:

Can someone please explain the difference between having a company setup to be the trustee of a trust as opposed to having myself as the trustee of a trust which will be used for purpose of subdivision and land development. Thanks

Allii

Huge difference.

Companies have the benefit of limited liability so will help protect you and your assets if something goes wrong. Althoug you will still be required to give perosnal guarantees for loans etc.

Using a company clearly distinguishes the trust assets from your own personal assets.

It is easier to hand over control with a company to someone else. eg. you become incapacitated and the trustee needs to be changed – if a company you just change directorships with title being the same with an individual you will have to change the title of the land.

This is also easier for estate planning at death too. Make sure you plan control of the trust being passed on as trust assets are outside your will.

A vendor would unlikely accept such a condition other than for a few days. Otherwise they could be locked in with you still trying to sell.

I imagine that would be a capital expense and could be deductible against any capital gain/loss

Thanks for this more concrete informaiton.

Do you have any caselaw to back this up?

My take is that 'variable' doesn't mean the contract contains an uncertain term. Variable could possibly mean 'uncertain' in some instances but could also refer to 'change' or 'adjustible'.

For a contract to be void for uncertainty I think you would need more than this. The language would have to be vague or imprecise.  You couldn't have an agreement to buy a house but subject to a price to be agreed upon.

One term of the contract could be imprecise but the contract as a whole could still stand. It is also possible that a term could be vague but stiff able to be defined by common practice or some other method. eg you could have an agreement to purchase a house with the price to be determined by the average of two valuations by registered vauers.

With the loan agreements the interest rate is listed in the agreement, but it is subject to change.

That website you listed is a bit of a conspircary right wing type. The letters are appauling.

Thanks for the reference, but I didn't ask such a question. 

Sorry to have offended you but it just doesn’t make sense. All lawyers study constitutional law as a compulsory subject so I have studied it in depth but it is not an area I am interested in

If there were state laws contradicting the constitution then they would be invalid and they would quickly be challenged in the high court.

Leaving the comments regarding the murders aside for a min Specifically which section of the constitution would prevent variable interest rates?

That is the most ridiculous thing I have read in the past hour!

Legislation takes precedent over common law and the HIgh Court is the only court that has jurisdiction to hear constitutional matters.

Who would be making the death threats? What recent murders could be linked to keeping the status quo? Do you think the reservice bank has a hit squad or that the CBA employs assassins to take out those who refuse to fix their loans? of course not, they would be contractors so that they do not have to pay the superannuation guarantee surcharge!

Next you will be telling us the 9/11 attacks were organised by Israel and the CIA? Or that Pharlap is still alive and living in Tibet under a false name.

Hi Tinsell

I am not saying you definitely need a licence but look into the laws of the State you will want to act in first. You may need a real estate licence or a buyer's agent licence.

No sure how the 'free people' bit fits in either. The laws are there to, allegedly protect the people and maintain standards. You could imagine how it would be if anyone could act as a real estate agent without being licenced (they are dodgy enough as it is).

And why would it be unconstitutional?

Remember the trust is not a legal entity. It will be the trustee that is owning the property not the trust. So it should be the trustee borrowing the money in their capacity as trustee.

If you borrow in your name an you are not the trustee then it could be deemed that you are onlending the money to the trust. If you did that then the interest on that loan would not be deductible.

Move in for a while and then rent it. Benefit could include:
– less stamp duty
– FHOG
– CGT exemption
– All the income tax deductions too (after renting)