I have 4 IPs valued recently @ $1.075mil with a LOC loan. They are all currently in my name. I am not thinking of buying more props in the next 6-12 months and to consolidate. Therefore this allows me time to think about a trust setup. Currently, I owe about 500K and overall small CF +ve every yeear <5K.
What sort of trust will benefit me the most from a tax viewpoint and also asset protection. My potential beneficiaries are my mum, cuurently retired and my sister who earns around 35-40K.
Also can I transfer the props which are currently in my name to these trusts.
Thank you for your opinions and anticipating ANY constructive advice
fjficm,
There’s a similar thread active on this forum right now, so you’re not alone with this dilemma.
You’ll be paying Stamp Duty costs at minimum to transfer to a Trust, plus likely loan fees plus more.
Frankly I reckon you’re best off holding these properties in your own name and simply buying future properties through a trust structure.
Cheers,
Aceyducey
fjifcm, following on from Acey’s points, you could then offer the properties as security for the trust to borrow 100% loans. This will aid in your asset protection, as your properties in your name are now pretty much fully encumbered by the bank..
Cheers
Mel
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