There is a great book on trusts which I am just reading:

Trust Structure Guide 2005. By Harwood Andrews Lawyers and the Taxation Institute Australia.

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Elka

Sorry, cannot think of a for instance off hand. Not all trust deeds are properly drafted, so some may leave out things that you may want to do, like run a business, or may not include a wide enough definition of beneficiaries, eg. step children if you were to remarry etc.

I think with a hyrbid, the trustee still has the option of not distributing to the unit holders at their discretion – however, this may have tax consequences – if the unit holder is not receiving an income then how could they claim the interest. This may be necessary from an asset protection point of view, as if the unit holder went benkrupt, and the units were taken contol by the bankruptcy trustee, you wouldn’t want them getting the income.

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Police will probably not be too keen, but ASIC will.

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Unless you are buying the whole building like Dazzling’s friend, then I agree with Nigel that car parks are a waste of time and money.

What sort of LVR can you get? Probably something like 60%. There are substantial risks such as govt taxes increasing, competition springing up and probable low capital growth.

If you are only getting 6% yield, with little or no capital growth prospects why not just put your money in a ING account?

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two weeks is a lot of time, many people only see their broker a few days before the auction!

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Hi Lesia

Yes that brings back memories. There was a lot of dancing and jumping around – probably 10-15 min per hour at least. Lots of video watching (We watched Titanic and another movie with Kevin Costner and baseball). Supposed to be inspirational. HAd to take off shoes at the door, and Roy did squirt people with a watergun (for coming back late etc).

Back then the refund was the course fee of $5000 less $500 for the hotel (5 nights in a 3 star hotel). Now I beleive he has constructed accomodation on site at the Hunter Valley.

Not sure about the endorphines??

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The title is in the name of the trustee. There is no mention of the trust anywhere on the title. Some then place a caveat on the title on behalf of the trust to make sure it can be easily proven to be trust property, if need be.

The trustee owns the property on behalf of the beneficiaries. If the trust does not make its mortgage repayments, the trustee will personally have to because of the personal guarrantee they have given.

If Trust B is a beneficiary of Trust A, then it can receive income distributions. Just think of it as another person. Income could be retained in Trust A, but the trustee has to pay penalty tax on any income that isn’t distributed – I think it is 49%. Other than that, I think that there are no special tax implications, unless one trust has a loss.

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Ni hao Anson

I am a mortgage broker based in Sydney!

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You may be able to do it in NSW if you are getting a divorce and have a court order.

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There are two ways to own an asset:

1) Legally
2) Beneficially

In a trust, the assets are owned by the trustee legally, but a owned by the beneficiaries beneficially.

eg. Say I buy a proeprty in your name. Maybe the house next door is forsale and I don’t want them to know it is me negotiating. I buy it in your name. You are the legal owner, but it is mine. You are the trustee and I and the beneficial owner. (this would be a bare trust).

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