Hi Guys & Gals,
A couple of questions…Is it hard to add a Corporate Trustee to a Hybrid Discretionary Trust after it has been established or would it be a better option to add this initially rather than have to worry about doing it later? Does the Trustee need to have an ACN or is ABN adequate?
I’m still trying to figure out the best option to set up everything. Will be looking to use the trust to make sure I get to keep my PPOR if anything ( touch wood ) should go wrong, and have all IP’s purchased and managed through it. Does it sound like I’m on the right track?
Any feedback will be greatly appreciated.
Thanks for your time,
Mark.
Hello Mark
It is easy to change a trustee, just a minute will do I beleive.
However, if you have loans in place the loan will have to be redone, and the title to the property will have to be changed to the new trustee. But I beleive there is only a nominal charge for this at the Land Titles Office. (LTO).
Also you would need to probably get some legal advice, especially if the trust already owned assets. In some cases changing trustees may cause a resettlement of the trust. This means a new trust is considered to have formed. If that happens, then CGT and stamp duty may be payable on all the assets held by that trust – just as if one trust sold them to another trust.
Also, having a corporate trustee on a hybrid can make things a bit more complicated when it comes to finance. This is because the title will be in the company name, but the loan needs to be in the unit holder’s name. Some banks have a problem with this.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Just another point on your comment on keeping your PPOR if things go wrong.
Having a trust may not help you in this regard. If you are personally sued, then your personal assets are at risk. This will include your home.
Some advisors recomend holding your home in your spouses name (if non working or less risk) or 99% in their name and 1% in your name. This used to be referred to as “woman of substance, man of straw”.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | 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
Thanks Terry.
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