Hi All
I have just set up a family trust as trustee for a real estate investing company.
My Questions areHow much should it cost to set this up and what should each years accounting figures be approx. ( I feel that I am being charged too much but have nothing to gauge my figures on.) To date the setup fee is $1641 dollars with no accounting fees included. At the moment the company holds one house.
What would you expect the accounting fees to be on this type of a set to be up with one house or possibly a few for a financial year??? ( my bookwork is spot on!)
I would be grateful if others could advise if they think this fee is normal or excessive etc from there experiences.
Many thanks in advance.
Cheers ISAgoldHi,
I’m a little confused by your opening line:
“I have just set up a family trust as trustee for a real estate investing company.”
I think you mean you have setup a company and appointed it to act as a trustee for the family trust, as this is the way it would normally work.
If as you say this is the way you have chosen to set it up, would you mind explaining to me why.
You might like to just double check this.
We’ve found that typically it will cost $2000 on-going to have a trust and the company entities.
I don’t believe it would really make a lot of difference to the on-going costs if you have 1 house or 10 houses held, expecially if you keep good and accurate records.The setup sounds a little steep, but is in the ballpark. Quite often you can actually save yourself some $$$ if you purchase a shelf company or trust, however you need to be 100% confident of what you are doing. At the end of the day this is all the accountant actually do on your behalf. Luckily my business partner is a qualified accountant so we were able to take this option and save a little$$$.
Hope this helps.
Tim Wilson.
“Poverty is not an option”
Tim is right. A shelf company costs abour $1,000 and the trust deed will cost about $200. Also, it is the company that acts as trustee for the trust. If you had purchased a commercial property, you’ll also need to be registered for GST & get an ABN.
Dear Tim and TrueBlue
Thank you for your help its greatly appreciated. It is reassuring to have this feed back and clarrification from you both.
Yes I got it back to front , it is a Pty Ltd ast for Family Trust. No commercial property as yet so no need for GST at this point of time, but do have ABN.
Many thanks
Isagold
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