FIRE Minimum Value Holdings to Warrant Trust

Discussion in 'Share Investing Strategies, Theories & Education' started by Goosehead, 23rd Dec, 2019.

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  1. Goosehead

    Goosehead Well-Known Member

    Joined:
    19th Nov, 2015
    Posts:
    91
    Location:
    Qld
    Hi guys, I am considering starting some debt recycling next year and am considering structural options. What is the minimum value of shares to warrant purchasing into a trust?

    To start with I won't have much, approx $50k, however the plan will be to increase that over time.

    Any information is appreciated.
     
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    It depends
    a) will you be selling to a trust at a later date? if so CGT will apply. But this in itself is a debt recycling strategy OR will you be keeping existing shares as is and new shares into a trust

    b) what will the trust cost to set up and run?

    c) do you want to get the shares into a testamentary discretionary trust upon your death?
    If so maybe a trust is not worth considering now. Alternatively, you could vest the discretionary trust at your death, triggering CGT.

    d) is there someone other than you or your spouse whom you may cause the trust to distribute to?

    e) will you be implementing a bucket company strategy as well?

    f) do you have a non-working spouse?

    g) will these shares be growing in value and be paying high dividends

    Depending on the answers to these questions and your circumstances you could always start off in an individual ownership structure and later sell to a trust.

    Best to seek specific legal advice
     

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