SMSF Lending?

Hi Jacqui, I bought them in mine and my partners name. Do you suggest in the future doing in a trust instead? Thanks again Ben

 

Hi @Ben Murphy

The trouble with buying them in your own name is that the only way to leave them tax-free to your kids is in your will. If you give the properties to your kids while you are still alive I'm pretty sure CGT and stamp duty will apply.

In a trust, it is possible to simply change who controls the trust. With that said, trusts pay more land tax than human owners.

It would be a good idea to consult your accountant about your purchasing entity for any future acquisitions.

 

A lawyer is more appropriate as this is legal advice. Generally, for property in VIC, I think a discretionary trust would be worth considering mainly for those seeking asset protection upon bankruptcy. There are many more advantages in dying with properties in your own name because they can be left to trustees of a discretionary trust which the children could be beneficiaries of and there are better tax advantages with this.

Having a property in your personal name could be passed over to children without transferring - they could stay there rent free, or be allowed to mortgage it etc. This way you can retain control and not lose the property if they children divorce and there will be greater protection on bankruptcy.