WHICH NAME TO USE???

Viewing 6 posts - 1 through 6 (of 6 total)

gus1970
Member
@gus1970
Join Date: 2005
Post Count: 13
January 23, 2007 - 6:54 am
When purchasing a property using a discretionary trust should the property be purchased in the name of the trust or the company trustee? And which name should the loan be taken out against?
Thanks
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
January 23, 2007 - 7:03 am
If you are buying a property in a Discretionary Trust then you would purchase the property in Mr & Mrs J Smith ATF for the Smith Family Trust. The loan would be in the name of the Trustees Mr & Mrs Smith.
However in saying this are you sure you will be buying in a DT ?
If you were purchasing in an HDT then the property would be in the name of the Trust and the loan in the name of Mr & Mrs Smith.
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Richard Taylor
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
January 23, 2007 - 9:15 am
On the title it is the trustee that is listed. The Trustee is the legal owner.
Terryw
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gus1970
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@gus1970
Join Date: 2005
Post Count: 13
January 23, 2007 - 3:12 pm
Sorry guys but I am a little confused from the last 2 posts. Please correct me if I am wrong. It is definately a discretionary trust.
The loan and the title should both be in the name of the trustee??? What are the implications of getting this wrong?
TIA[wacko]
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
January 24, 2007 - 9:45 am
The trustee is the owner of the property. So this is the name that is on title. When you sign a contract, you can sign TIA ATF (as trustee for) XXX Trust, but it is only the legal name of the trustee that is recorded on title.
Terryw
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gus1970
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@gus1970
Join Date: 2005
Post Count: 13
January 24, 2007 - 11:21 am
Thanks Terry