Hi All, This is my first post on propertychat. Hope I am not posting a duplicate question. I did search on properychat and could not find any similar discussion. Also sorry for a bit of a lengthy question. I do own owner-occupied property already. As of now, I do have some savings but not enough to invest in another property (due to borrowing capacity as I am a salaried worker). In the current property market, its really hard to get the initial deposits just by keep saving. So thinking of setting up an investment vehicle to put money periodically to build up some equity/cash. After assessing different structures, I was inclined toward Option A (Picture below). As I won't be dealing with high-risk activity, I opted for a non-coporate trustee. Family Trust A will mainly invest in some stocks. Putting a bucket company as a beneficiary seems to be a good option. Bucket company is owned by another family Trust B, will help to distribute dividends of the bucket company in a tax-effective way. Family Trust B does not trade and its only purpose is to get the income from bucket company and distribute it to the beneficiary. Enter my accountant. He suggests having Bucket company as Trustee and Beneficiary. Bucket company is owned by me and wife (shareholders and directors). Hi points out the best of both worlds. Having corporate trusty as added security and beneficiary gives the flexibility of distribution (to the shareholders). And also one less entity (Family Trust B) to deal with accounting and maintaining cost. He suggests that purpose Family Trust B can be questioned by ATO's as it does not trade and only distributes income. My questions: 1. In the first setup (Option A), does Trust B's will be an issue in ATO's point of view? 2. In the later setup (Option B) any pitfalls other than less flexibility of distributing income? 3. In a few years, when I purchase an IP, I can have a separate corporate trusty with a separate family trust. Can I add the above bucket company as a beneficiary for IP's Trust? If so, which one would be more flexible A/B? Thank you.