Pay interest of trust home loan from personal bank account

We have a property under a family trust with a corporate trustee. Is it ok to pay its loan interest and other expenses from our personal bank account where our salary goes into?

The other option is paying from the offset account linked to the trust home loan. However, this is less convenient for us as we need to transfer money from our salary bank account to that trust account regularly.

 

How will you record the payments in the financial statements of the trust?

 

How come the trust doesn’t have enough money to pay its own bills?

For tax “cleanliness “ it would be best for you to loan the trust money and the trust to pay its own bills rather than you personally paying it’s bills.

 

Why would you pay someone else's loan?

By paying it you are gaining an equitable interest in the property and weakening asset protection.

 

I'm guessing the concern was never asset protection here Terry... I reckon they've got a trust just because they heard it was a good way to save tax.

 

a lot of people think the word 'trust' is like a mantra. You just have to recite it daily and that is enough

 

Thanks all for the advice. It takes a lot more effort to manage an asset under trust structure and have to remind myself regularly that the property is under trust