Oh, you meant 'having' not halving.

There may be some advantages in having the unit trust – but I think nothing major.

Why not just have the company then. that would be safer too. Just allocate shares to be held by each family trust. One major downside, however is that companies don't get the 50% CGT reduction whereas trusts do. But if you are having a company as owner then the CGT won't be available to the unit trust as shareholder – or maybe you mean the company will be trustee of the unit trust?

Thanks Banker.

There is no legal requirement, that I know of, for a trustee to notify a third party of their capacity as trustee – so the loan, from a legal POV could be in the trustee's name, and this shouldn't cause any problems. I was just wondering how banks view this sort of thing. In most cases they probably would not know a trust was involved, though they may if the contract is signed '….as trustee for….

If he is coming to see you, then he is probably a 'vanilla' person – a mobile manager

NAB are a bit difficult too. My manager can't do them, company loans have to go to the commercial guys. Same with Westpac, no idea with CBA sorry, but it is worth a shot.

changing trustees will be painful.

It is much easier to have a company as trustee. then you will just need to change directors if you need to change control. No need for title changes etc.

Better get advice from a lawyer, rather than a banker.

Changing trustees is not a simple matter if there are properties and loans involved. As the bank guy if you will have to reapply for the loan again – which i think you will because the legal ownership has changed. This will put you back into square one.

Then look into the stamp duty issues – depending on your deed and State you may be up for stamp duty again.

for 2. Trusts are not put on title. It is just the names of the trustees. So Smith and Jones as tenants in common. If you change trustees, then you will need to change title deeds to XYZ Pty.

Looks like you maybe forming the trust by yourself. This can be unwise if you don't know what you are doing. If mistakes are made it can be extremely costly to rectify them.

Without seeing the whole thing I am not sure if the above is correct or incorrect.

No. a caveat will prevent further dealings. It would need to be removed and lodged again. 1st mortgages will have priority over caveats.

Seniors can still get loans if they are working – mostly self employed i guess.

Maybe we could all use our parents/grandparents to buy our properties and then set up testamentary trusts.