they say to set up a trust costs about $1900. does the accountant set this up? is it all the acountants fee? is it an annual fee or a once only fee? is it tax claimable? what does it cost to add other properties to the trust?
any comments on this is much appreciated.
frosty1.
Hi frosty
We recently got a Discretionary Trust Deed, along with a new company, to act as the coprorate trustee, for $1,400 from an accountant. It is likely that the set up costs will be business expenses for the Trust.
If you are researching Trusts for the first time, I'd suggest you grab a book called Trust Magic. It's an easy read and can be found a:
http://www.trustmagic.com.au/Good luck.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Prices vary and your estimate is about right. We set up a standard discretionary family trust for clients for around $600. The cost is Tax Deductible and includes settinh up your ABN and TFN.
Richard Taylor | Australia's leading private lender
Setting up a trust can cost as little as $175 on line, but you would be wise to use a professional to assist you in setting one up or you could get into a mess. Accountants don't prepare deeds. They are drawn up by solicitors. Accountants can assist with filling in the roles such as who will be appointor and trustee etc. This will vary depending on your circumstances. So the set up fee may go to the accountant, but they will have to buy the deed, so it is not all profit. The set up fee is once off and can be claimed by the person setting up the trust.
You can have a company as trustee and this will cost extra for the company formation – Min $400 to ASIC plus the set up fee.
Annual running costs for a trust will be the cost of an annual tax return and the cost of ASIC fees if you use a company.
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
I have got Hybrid Discretionary Trust set up for ~$400 and company for ~$700 through an accountant.
Hi Frosty,
mate the way i see it is you can get them done for under a grand including a trustee company.
But,at the end of the day you are using it for assett protection and negative gearing with property investing, so you really want to pay someone whatever it costs (up to $2500) to make sure the trust deed is going to stand up to any discrepancies you may have down the track.
For example you may get sued or the ato may have a problem with you claiming certain things if not written correctly for yr circumstances. I personally used Dale gatherum Goss( who uses a macquarie bank deed) as he is connected with Chris Batten who has high connections with the ato.So when issues arise you are kept in the loop and Dale even offered to rectify any changes needed in the deed if the situation arises.(for ex,currently there is a situation going through the ato with a discrepcancy)Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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