All Topics / Finance / Beneficiary using equity in a trust

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  • Profile photo of BlueBeamBlueBeam
    Participant
    @bluebeam
    Join Date: 2012
    Post Count: 1

    Hi All,

    Very new here so hopefully not a silly question!

    Can a beneficiary of a discretionary trust use equity from property held in that trust to use for their own IP in a new separate trust? 

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes, if the deed permits.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of christianbchristianb
    Participant
    @christianb
    Join Date: 2009
    Post Count: 386

    Terry, is this some sort of third party equity?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The equity would belong to the trust so it would be third party from the beneficia

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes. Third party from the beneficiaries point of view because they are using someone else's equity

    This could be done by the trustee borrowing and I lending money or the beneficiary borrowing and using the trust property to secure the loan.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 5 posts - 1 through 5 (of 5 total)

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