Family Trust Bank Account for multiple properties

I am using a family trust to buy two different properties in two different states. Is it ok to use one family trust bank account to manage the finance of the two properties? Is it better to have two separate accounts?

 

Makes no difference

 

agree with paul. as long as your bank is reconciled then cant see any issues

 

However when it comes to TRUSTS I often recommend some unit and hybrid trusts only even buy one property. Never two.

 

I can think of 4 reasons why a unit trust should not hold more than 1 property.

 

having more than one property in a unit trust can be an absolute nightmare.

i agree with terry id never recommend it hold more than one.

 

Double CGT is the very basic concern.

 

Could anyone please explain double CGT?

 

Unit trust could incur CGT on the sale of the property and unit holder could incur CGT on the sale of their units

 

This would be no different to an individual buying in different states and using the one bank account. I cannot think of any legal or tax reasons why you would or wouldn't use one account.

 

Does the account in the name of the trustee need to have the name of the trust mentioned as a <xyz trust account>?

 

no

 

Not need BUT its does help to avoid mistakes when banking. You dont want to accidentally use the wrong account. Banks have their own rules anyway and will usually include the name of the trust entity in some form.

 

So if you have a corporate trustee, you don't need to have CORP TRUSTEE ATF TRUST NAME as the name of the bank account, you can just have the account in the name of CORP TRUSTEE, is that what you mean?

Does that apply to other things e.g. If buying shares to hold in trust, must you record the ownership under CORP TRUSTEE ATF TRUST NAME, or just supplying the CORP TRUSTEE name ok?

 

a trust is not a legal entity. the trustee holds the trust assets (usually)

 

I am using a discretionary trust with a corporate trustee. Is that an issue?

 

If the trustee holds 2 or more properties then it needs to consider the asset protection issues, estate planning and different land tax and stamp duty laws if holding in different states.