Good Morning All…
One of the advantages of a Trust is the ability to distribute profits to lower income beneficiaries as desired (at least with a DT)
Is a Trust the only way to do this?
Regards
DarylIf you want to be able to change the recipients or the percentages of the income they receive easily a trust is the way
A disrectionary trust is certainly the easiest and most flexible. But this can be done with a company too to a certain extent. eg. If your company wants to distribute to X, then X would simply need to do some work for the company and invoice it.
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
Terry, you get into GST issues with just invoicing, and it is also pretty easy to spot a family member as a supplier by chasing the money trail. But yes, it is possible.
A DT is the best way, but bear in mind the DT quarantines negative gearing inside the Trust.
You can do it with a properly company with multiple share classes, but a company does not permit pass-through of the 50% capital gains tax discount.
Rather than invoice the company you would better off to make the payment on a PAYG basis.
Dependant on the amount we are talking about and the regularity would determine whether their was any Employer Superannuation considerations.
Cheers
Richard Taylor | Australia's leading private lender
Gee Richard
Do you really need to put your details twice?
More chance of people reading it I suppose……
Colin
I think it is the new format of the forum.
You wanna see you last post with all the ///????111???$$$$ on it lolRichard Taylor | Australia's leading private lender
No Richard
I put those there on purpose……apparently
Hope all is well with you mate.Back on topic though, I believe the best way for distributing funds is through a trust IMOP
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