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Legal Tip 91: Structuring a Trust to Maximise Borrowing Capacity

Discussion in 'Legal Issues' started by Terry_w, 21st Oct, 2015.

  1. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Had to go to another lender with a better servicing profile as ANZ wasn't going to come to the party. It worked fine with the new lender. I've seen the same issue with other lenders recently.
     
  2. Brady

    Brady Well-Known Member

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    For future reference no issues with CBA - simple as providing payslip showing she's working and only list 1 adult - make comment she's working and financially independent.
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Thanks Brady. I have successfully done this with the CBA. In my previous example the clients already had ANZ accounts and wanted to keep the IP there.
     
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  4. Terry_w

    Terry_w Well-Known Member Business Member

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    Level 12, 580 George street Sydney. :)

    Here is a link to the post I just made about trusts and borowing capacity:
    Trust Strategies to Increase Borrowing Capacity
     
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  5. Dean Collins

    Dean Collins Well-Known Member

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    Terry,

    when a trust is wound up in 10-20 years from now and the assets handed to the beneficiaries.......do you have to pay stamp duty again? (eg a child comes of age and then the property transferred into their name instead of the trusts name).
     
  6. Terry_w

    Terry_w Well-Known Member Business Member

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    Yes, in NSW if a discretionary trust and dutiable property is transferred. But it will depend on the state.

    If a bare trust then nominal duty.
     
  7. Decisions about vesting a trust need to be given serious contemplation (affects Rheinharts too) as a range of concerns can occur incl duty, CGT and estate planning matters. Trusts are often used as a vehicle to limit assets passing to a beneficiary but handling control to them may be an idea instead. Or partial control ?

    eg Some parents think holding property in a trust until adult kids attain a certain age. It may be wise to NOT vest as this exposes the assets to creditors, wives (?) and others and may trigger CGT and duty. Instead giving them Directorship of the Trustee and appointor powers may be a option (or a concern). Many trusts include rules that do not permit vesting etc until a nominated grandchild attains at least a age of say 25 so that adult beneficiaries personally dont benefit but leave trust for future generation/s also. All different reasons.
     
  8. Terry_w

    Terry_w Well-Known Member Business Member

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    'Spouses'.