Should a property always be put in a trust name? We are purchasing a property that will be settled in March. At the moment it is in our personal names but we do have a family trust. Our accountant says that it wont make much difference but I am worried that eventually it will.We intend to hold onto it for about 5-10 years. This matter is quite urgent so I would appreciate any feedback to put me on the right track]
Hi DiamondCreations,
As a general rule, a trust is the best structure to purchase your investment property. However, this may not always be the case depending on your personal details and your future intentions with investing. It will also depend on whether the property is postive cashflow or negatively geared.
The issue you currently have is that you have signed a contract and you do not have a structure in place (The trust should exist at the time of entering the contract and the contract should have been signed ‘and or nominee’).
If you are just starting out in investing, there is no real harm in buying the first one in your personal names if you are trying to find your feet.
Cheers,
Mark Unwin
Diamond
I think you mean you already have a trust in place, but just signed a contract in your own names?
I am not entirely sure myself, but in some states you should sign the contract as “name ATF XX family trust”. On the other hand, trusts are not legal entities, so the trustee just owns property in his/her name on behalf of the trust. This is noted on a minute by the trustees – and you can protect yourself furthre by putting a caveat on the title after settlement, noting this is a trust property.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
