I agree with Richard – it will have no effect.

Asset protection = company because of the limited liability.

If the trustee is sued the trust assets will be at risk, if these are not enough to satisfy any judgment then the personal assets of the trustee will be at risk.

hi IP

The parents could leave the asset to the discretionary trust. Not sure about hte SMSF though.

But, it may be better to change the will to a testamentary discretionary trust for the added tax benefits s102AG – but these would probably acrue to the intervivos testamentary trust too, but it would be a hassle to keep the income separate. s102AG allows children to receive income from a will or estate and get adult tax rates.

Watch out for land tax/CGT if the property is going to be a main residence and going into a Testy trust.

Not really. You will end up paying more tax as companies are charged a flat rate of 30%. Also no 50% CGT discount available.

Look at discretionary trusts instead.

Generally you shouldn't pay down an investment loan as you will be tying up your money and it won't be tax effective if you need the money for personal expenses. But you also want to release your mum from the shakles of being your guarantor – the only way to do this is to gain equity and there are 2 ways to do this – capital growth and/or reduction in loan.

If you were disciplined you could use a 100% offset account and save up the money in that. When you reach $69k you can consider whether to pay it off the loan or not. This will save the same interest, but keep things flexibile.

What about CGT?

Agents commissions would be around 2%
lawyers about $1500
discharge mortgage etc $500

But CGT could be bigger depending on your situation.

What state?

Hi Bob

Are you asking if the CG from the sale of 1 property could be streamed to, say, 2 people and that each of those people can get the 50% CGT discount.

I think the answer is yes. Any accountants out there?

Not so.

The trustee doesn't matter because the income flows through to the individual who pays the tax.

Also, try getting a loan for these. Much harder that normal residential. Therefore it will be harder to sell too.