Hey
From what I hear if a person gifts money to a trust he/she will from that point be treated as a settlor in that he/she can never again recieve a distribution from the trust.
But what if there are two trusts and person X gifts money to trust A (where this capital is invested), trust A distributes income to trust B, and trust B distributes income to person X, would this work?
Any comments would be appreciated.. Even if somebody could point me to where on the ATO website I can find legislation about this, I’m so sick of searching the ATO site…
Cheers,
CarlDoesnt sound right to me?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by carl_vic:From what I hear if a person gifts money to a trust he/she will from that point be treated as a settlor in that he/she can never again recieve a distribution from the trust.
I have not heard of this before, and disagree. Where did you hear this from Carl?
CATA
Asset Protection Specialist
[email protected]I believe that the settlor is the person that gifts the initial sum – only.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I was told by a representative of Castle Corporate, a well known company that supplies trust deeds, shelf companies etc, from Melbourne.
The giftor will not be registered as a settlor but will supposedly be treated as one for the purpose of ‘not being able to ever be a beneficiary’.
I would like to read the specific legislation, but I’m not sure where to find it since it’s a matter of trust law, not tax law
You must be logged in to reply to this topic. If you don't have an account, you can register here.
