To set up a trust or not

Scenario for this topic.

Party A (downsizers) wish to purchase a property (would be an IP for 1-2 years) before moving into it as a PPOR.
Party A do not seek too derive an income from IP as it may impact on govt pensions/benefits etc
Not being perticularly familair with trusts and which trust is more appropriate - I'm after some thoughts / ideas.....
If party A were to purchase the property in a trust instead of their own names, does this eliminate the issue of income received to the party A (individuals) and eliminate issues of losing possible pension/benefits...

If IP revenue is received into a trust - does the distribution to the nominated benificiaries get taxed against the individuals / ie: could it still affect the pension/benefits..... of the beneficary / Party A

Also keen on Pros/Cons of a trust for retired person

 

I think you need specific legal advice - assuming you are party A.

Look at
PART 3.18----MEANS TEST TREATMENT OF PRIVATE COMPANIES AND PRIVATE TRUSTS
s 1207 onwards, of the Social Security Act and see how complex trusts and pensions are.

 

Parties to a trust who receive any benfits can expect to receive a phone book of forms to complete. Basically if you may have a remote beneficial interest or even implied interest you will be assessed as if you are the sole owner...or worse

I see silly people distribute trivial sums to pension recipients thinking its wise and they lose their pensions. Then very costly deed amendmnets are needed

 

Here is an idea, do not focus on getting pension, focus on getting as much income as possible from asset/s.

If income is not much, they may be able to legit get part pension.

I know people who spend large parts of their life doing things so they would still get the pension & some of them still do not have it even after many years of shooting self in the foot.

You can see just today that the possible future govt is looking to stop people using trusts for financial gains. I can't see how any sort of scheme would be allowed.

 

My business is set up as a trust. Beneficiary pays tax on the income earned and the income from a trust is considered as assessable income that can affect pension (depending on amount).
Will your parents even be eligible for the pension because Centrelink will take into account the value of their assets outside the family home.
- Btw im a non financial type person.