My wife and I currently own 3x IPs that are all owned 50/50 in our own names. With hindsight, I feel we should have set up a trust to allow for flexibility as they are all pos geared and for future CGT minimising. Too late for this now and regret not setting these up better earlier. My wife is currently off work looking after our son and likely to return to some part time work next year. I am currently earning around 250k per year. Looking for some feedback from the brains trust, if you would set up a trust for future purchases of PPOR (750- 900k) and shares (estimated3-5k per month). Unsure at what point a trust becomes worthwhile the management cost. Understand I will need to discuss finer details with our accountant. Cheers!
Not so much for CGT for PPOR. We have had 2x ppor that have turned into IPs, so can be beneficial if this was to happen again. But is there any downside with it being in a trust?
Plenty - no main residence CGT exemption - no land tax exemption in most states - could be a breach of trust - cannot pass asset via will - little asset protection potentially - issues accessing equity - complexity - frequent changes in laws needs legal advice and amendments - foreign family members excluded - loss of control - cannot get into a testamentary trust so income can go to minor children - harder to finance. etc
Annual accounting and tax costs Estate planning Land tax issues in some states (eg NSW $12K a year extra cost ?) Family trust election issues (irrevokable choices) Then there is a unit trust. Complexity multiplies.
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