Hi all.
Reassuring reading everyones postings. My first posting, bit nervous.
I’m young have read Steve’s book and others (Most of Rich Dads). Spent last 2-3 yrs building income streams and cashflow.
BUT things have changed, recently divorced, alot of losses including fairly new successful business due to non agreement on buy-out. End equation is about 25-30k left in property – after buy out. Is a line of credit, paying about $1300 mth into mortgage. I have only just re brought the house hold furniture. Now being very ruthless with expenses. No other debts apart from mortgage and a combined income from job and second sml part time business totalling appox 80k – 90k annually. Thinking towards setting up discretionary trust, pumping savings in where possible (approx $500 mth to start) then pull larger sums out of mortgage as it builds up to buy property in future to benefit kids and self including protection in future. Accountant says I can’t direct my salary through trust due to tight new contracting regulations. My question is can a discretionary trust be set up with savings being added and left idle in the beginning? How active do they need to be? Salary through trust?
Any input on any of above appreciated.
PS: Not bitter ladies, just want to rebuild as quick and as effective as possible.Hiya freedom, welcome to the forum
A trust is just another entity. You can open a bank account and put any money in you like (keeping the records of course, whether it’s a gift or a loan from yourself). Any interest that account earns must be distributed to the beneficiaries, but any capital can sit in the account for as long as you like – or until you do something with it[
]Cheers
Melfreedom Welcome to Forum,
Why you want to put money in discretionary trust account? As mel said money has to be distributed between beneficiaries so I don’t understand why you need trust.
I know one person he gets his salary in trust.
Cheers
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PropertyGuRu
Who want to be billionaire?Guru, I was guessing that freedom wanted to put money in to build up the balance, and then when there was enough, to purchase either shares or property. Sort of like the ‘forced’ saving plan, but putting it into the trust where the investing is going to happen from.
Cheers
MelThank you both for responding.
Yes Mel, that was the way I was thinking. Forced saving that I could clearly keep separate and buy with at later date as separate entity. This way showing independent growth, as later I want to give away job and live from this structure.
Also easier to have cohibatation agreement/etc signed against one asset instead of here there everywhere.
Property GuRu, with the salary thing: I wanted to direct my main salary into the trust similar to a contracting senario. Then draw a smaller wage from that. Is that what the person you know is doing? 30% tax instead of 48%?
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