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Financial Structure

Discussion in 'Legal Issues' started by DDBY, 6th Aug, 2015.

  1. DDBY

    DDBY Member

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    First time poster so please be gentle.

    I currently have 1IP in a discretionary trust and another on the way. The trust was setup after seeking advice from a company in WA, but after my recent tax return for the trust I'm not confident that it is what is suited to my circumstances due to the fact the the losses are quarantined. The trust is setup with two trustee's (my partner and i) and we are looking at purchasing multiple IP's over the next 10-20 years to secure our future with the purpose of having an income from our investments once retired and also to pass the property onto our children when the time comes.

    I would like to determine if the financial structure utilised is correct for our needs based on our current and future investments. If i have made an incorrect investment decisions and this is not the correct method, what can be done to rectify this understanding there will be fee's to take the property OUT of the trust.

    I currently live in Sydney and would like to know if anyone can suggest a professional to discuss my situation with and determine the best way forward.

    Thanks once again.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Its not the financial structure but the legal structure that is important. This has to be set up in a way that maximises the ability to get finance and minimises risk.

    Did a lawyer set up the trust?
    2 Trustees is not good.

    You may not to need to transfer the property out of the trust but to just restructure the trust and related structures.

    See my legal tips.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    DDBY...


    What ? Why would you use a trust and lose the land tax concessions and deal with issues with loans and quarrantined losses. Time for personal tax advice. Who gave you that advice ??Maybe a right to seek damages ?? Financial advice ?Credit advice and tax and deficient legal advice maybe ?

    One of the greater issues with trusts is that the banks now likely ONLY lend to the trustee and wont so equity releases the same may as human owners. You may have a problem and need good tax, legal AND lender advice.

    Human trustees suggests thay are masking land issues and you were given a dud steer. You may have breached NSW Duties Act too I will guess.
     
  4. DDBY

    DDBY Member

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    So i guess i should stop the other IP that im purchasing as i type from going into the Trust so it doesn't cost me down the path to take it out?!!?
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Depends on the situation - you need to seek advice.