Good Morning All
I have 2 IPs under a P/L structure and am presently looking to change to a Corporate Trustee Structure (as per Wealth Guardian)
However I am not sure whether it will suit our circumstances, eg
Wife and 2 teenage sons in full time salaried employment,therefore income splitting may not be of an advantage.Also do the trust beneficiaries have access to the funds distributed to them i.e can they withdraw the funds at their discretion?Thank you in anticipation.[^]
If you setup a discretionary trust it is at the discretion of the trustee, if you make yourself the trustee that would be you.
The beneficiaries would only receive the benefits that the trustee decides to give them.
Thats my interpretation of the information that I’ve heard anyhow
Hiya 2day,
Using a trust with a corporate trustee gives you multiple benefits. If your going to continue to purchase more IPs then you should use one to:
a. minimize your tax by income splitting to those in the family with the lowest income tax rate,
b. protect your assets if you or a family member are sued,
c. control the IPs without actually owning them.
Once the Trustee (usually a company of which your a director) decides to distribute profits (or losses), the beneficiary receiving them can do whatever they like with that profit (or loss), its passive income and theirs to spend, save or reinvest as they see fit. Of course they do have to pay tax on the amount distributed at their current tax rate.
Please check all this with a professional before you get started.Hope this helps,
Cheers,
Justin xThanks guys
You,ve both been very helpful
See Ya
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