Bank account for Trusts

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

camakos
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@camakos
Join Date: 2007
Post Count: 14
March 20, 2007 - 3:15 am
Can anyone advise me on what sort of bank account is best to open for a trust? Is it good to have an offset account for when your rents go in to help reduce the mortgage?
Any help would be greatly appreciated.
Caroline
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 20, 2007 - 4:49 am
Offset accounts are best, – these accounts need to be in the exact same name as the loan they are offset against.
Terryw
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Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
March 20, 2007 - 6:12 am
Further on from Terry;s comment this means you need to choose the lender wisely as not all of them will offer a 100% offset account.
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RVP
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@rvp
Join Date: 2006
Post Count: 47
March 20, 2007 - 6:19 am
Could you give me alittle more detail on this issue TerryW if you ask me how to make money i can tell you but when it comes to such things as this savings and taxes im not educated yet thanks
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
March 20, 2007 - 6:38 am
Well, there is not much to tell. Many lenders offer 100% offset accounts, so if your trust has borrowings, get an offset account and place all rents etc into this account and get the repayments etc direct debited.
The balance in the offset account will be offset against the loan. So if you have a $100,000 loan with $10,000 in the offset account, you will only pay interest on $90,000.
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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RVP
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@rvp
Join Date: 2006
Post Count: 47
March 21, 2007 - 11:54 pm
Thanks Terry that is why im here on this website I know how to make money but im not very knowledgable when it comes to such things as tax savings so it is most appreciated,
Kind Regards [grad]