A question to all those in the know
I just read Steve McKnights book "Wealth Creation" and found t a real eye opener.
(esoecaily reading that a "Personal gurarantee is not the same as having debt in your own name!!).Anyway, income splitting was also mentioned where you can distribute income to your family members (especially to children).
I am single and would like to know if settig up a trust would still be beneficial???Do you have to nominate just your immediate family as beneficiaries??
Regards
Hi jezzah
Some of the Discreationary Trust Deeds I've seen, nominate just about everyone in the universe
and certainly all the companies you're involved with, so no, your beneficiaries are not limited to immediate family.Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Discretionary trusts offer the best asset protection too.
Most deeds are worded so as they include future people too – those not yet born such as kids, grandkids should be covered too.
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
Yes.. my DFT includes virtually everyone!!!!
Actually there is a requirement for beneficiaries to be determined with certainty and it can't be too broad. I recall hearing one story that someone tried stapling the white pages to his trust deed and have everyone listed as a beneficairy – but this didn't work.
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
Im in a similar boat, being single, and wanting expand my property portfolio. Ive recently started a family trust with my parents going 50/50 with them. It certainly makes life a little more comfortable financially and will hopefully allow us to build up a decent trust portfolio. So far i would say it is beneficial time will tell.
I believe you can nominate any beneficiaries you want when setting up the trust its really down to you and who you want to disperse the profits too.
Thanks for all your posts – you've made me appreciate trusts even more now!!
Rgeards and sucessful investing to you all!!!
hI, just wondering what are the ongoing costs?
KY
Hi,
Are you sure it's my book… can't recall writing one under that title
As a general rule, beneficiaries are usually worded in a generic sense as far as family is concerned (mother, father, cousins, step siblings, sons, daughters, grand children etc), plus you can also nominate specific beneficiaries too (a company, charity etc).
For a more accurate answer you will need to look into the wording of your trust deed.
Cost is usually <$1000 to set up, and less than $750 per annum to maintain (tax return, financials). It will be more if you do a lot of investing or keep poor records.
– Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi All
Along this subject heading, I am also single and intend to set up a trust. I have a 20 year son and 12 year daughter, son is independent and daughter lives with her mother.
I am a firstime investor and in the process of settling with my first property investment in August 2016, the loan will be in my own name which I would prefer be in a trust structure. The reason I am purchasing my first IP in my own name is because one accountant told me that in my situation (guessing income level) the trust structure is not possible!!!
Purpose of this “structure” is for asset protection and minimise tax. Love Steve’s book ‘from 0 to 130 Properties in 3.5 years’ – on page 161 he talks about these optional structures.
As mentioned my intention is to create a family and unit trusts and have me and my kids as beneficiaries. My question is taking into consideration of all the annual costs associated in administering these trusts (corporate trustees etc….) – can a single person with an income of $68,000 (before tax) create a trust structure? Do I need to seek a property/tax accountant to answer this, if so, do you guys have any recommendations on who I can contact to assist me in setting up these trust structures based on my income level and situation with my kids?
Thanking you all in advance
Zen
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This reply was modified 7 years, 10 months ago by zen.
Why would a trust not be possible?
Of course a single person can create a trust structure, you just have to consider all the options. You can ask an accountant about the tax aspects but trusts are complex legal devices and only lawyers should advise on them.
The first thing you should consider is land tax as often once this is considered the dream of using a trust dissipates – especially if the property is in NSW>
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 Terry, appreciate. I noted about the land tax in NSW. Will see an accountant about the tax aspects of a trust structure, then a lawyer regarding the legalities of them.
Zen
why not just see a lawyer about both?
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 Terry, thinking of enquiring at http://www.legalvision.com.au try see how I go.
Also I saw these sites, not sure if this applies to me? https://www.ecompanies.com.au/discretionary-trust/
cost $121 to set up a family trust!!!
The deed is only one aspect. It is the advice that is important.
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
Oh ok, yes will seek their advice on family trust structure, thanks Terry.
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This reply was modified 7 years, 10 months ago by
and certainly all the companies you're involved with, so no, your beneficiaries are not limited to immediate family.
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