I'm looking to buy a property and have it set up under a trust and i would like to know if the trustee would have to go down on the loan for the home or could it just be me?
Hi, Chokko
The Trustee's name goes down on the loan for the home.
If you are the trustee, then your name.
If the Trustee is a company, then the company's name and signed by the director(s) of the company.
The wife and I signed on our first IP in early May using a Family Trust with Corporate trustee.
Regards
DanielThank you for your feedback.
remember a trust is not a legal entity, it is just a 'scheme' so it is the trustee that is the legal owner of the trust's assets. Trustee's name goes on title. The loan can be in the trustee's name without mention of the trust or in the name of the trustee as trustee for the XXX trust.
And, lenders will require guarantees. This is usually the trustees or the directors of the trustee company, but some lenders will also require all named beneficiaries to give guarantees too (which you don't want!). so be careful in setting up your trust.
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
Thank you Terry.
The beneficiaries of the trust would be my wife, my son and me. I'm also wondering if i should be the Trustee or if i should get a trusted thrid party to be the trustee. Do you have any advice on the best way to go?
It would be great if you could get someone to be trustee – and take the risk, but may be hard to do since they would be guaranteeing the loan.
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 for the advice Terry.
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