Best trust setup for IP's? (VIC)

What is the most common trust set-up if planning to invest into multiple IP's in the future with your partner? In terms of best balance between taxes and asset protection.

It seems that for properties unit trusts are recommended usually and for shares family trusts.

 

You are assuming one trust for all?

The 'best' would be a discretionary trust, appropriately drafted deed, with a separate trustee for each property.

But this would cost you a lot in terms of land tax and accounting fees and other legal issues.

You should seek specific legal advice, from a solicitor

 

If its neg geared property there may be sound reasons NOT to even consider a trust. The trust could produce a loss and then there is no neg gearing. Just an accumulated loss in a trust. Unit trusts dont usually offer asset protection in its simplest form where the unitholders are the individuals. Your assets just change from a share of title to a indirect interest in a trust. And anyone thinking of going to work overseas should know the issue a trust will create. All why legal advice is suggested. Units trusts can sometimes dovetail with individuals who have decent super balances and equity in other property to allow some strategies using super.

 

Plus estate planning.

 

Land tax is so hard on discretionary trusts, especially NSW. Which states are most faovurable/lenient on discretionary trusts when it comes to land tax?

 

NT
Then QLD

 

Investment properties in NT probably not the smartest idea haha