New Family Trust with each purchase with the same Corporate Trustee

Discussion in 'Legal Issues' started by Rick Mick, 20th Apr, 2022.

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  1. Rick Mick

    Rick Mick Member

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    Interested to know, do you guys set up a new trust with each property purchase using the same trustee? If so, what should I know before doing the same and why is it a good idea.

    If it is a bad idea, why is it a bad idea?
     
    Rick Mick, 20th Apr, 2022
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Thats really difficult to answer. Its a "how long is a piece of string"question. Some reasons could include

    - NSW property ?
    - What sort of trust ?
    - How may non-QLD property be impacted by proposed law changes in QLD ?
    - Cost for each trust v available land tax threshold
    - Neg gearing. Since losses remain in the trust.
    - Cost to setup and maintain.
    - Could QLD laws change so the mechanisms used in other states affect QLD trusts ?
    - Finance
    - Family arrangments ?
    - Abentee issues
    - Non-residency issues for the trustee
    - How does your estate planning consider the issue ?
    etc
     
    Paul@PAS, 20th Apr, 2022
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  3. Terry_w

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

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    Yes, because a trustee is personally liable for the debts of the trust
     
    Terry_w, 20th Apr, 2022
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  4. Rick Mick

    Rick Mick Member

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    Rick Mick, 20th Apr, 2022
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  5. Terry_w

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

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    Terry_w, 20th Apr, 2022
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Great example of why seeking legal advice on such matters is wise.
     
    Paul@PAS, 21st Apr, 2022
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