Hi guys, I'm new here but have a few properties under my belt so not a complete novice. I'm looking to get advice as I want to setup a trust for any future IP. Discretionary 'family trusts' are the common choice but a few questions... 1) can I as an individual lend the full amount to the family trust to buy a commercial property? 2) then can our business which is a small biz, pay the family trust rent which gets distributed to me and my husband? 3) can any expenses be claimed through the trust eg: outgoings? 4) as the commercial is in nsw, are there any land tax exemptions if purchased in a trust? Thanks so much. Cheers, Dom
1. Yes. Lend to the trustee is possible as long as not the same person. 2. Yes potentially. 3. Yes 4. No
Thanks Terry, I don't want to do it SMSF because I want to be able to access the funds now.. i'm 36 now so got a little while to go. Any downside you know of with a discretionary vs a unit trust? cheers, Dom
I guess the main reason though is distributions via blood linage but also liability. I know landlords insurance has a component to it for personal liability but its quite limited from what I read in the PDS.
Really ? I would say the opposite. The insurers legal advisers are on a retainer and love to defend claims. They then get paid more. I had to handle a claim against a former employer by a client. The insurer sent us to see Phillips Fox (three lawyers) and they worked hard and defended a $4m claim. No liability. Not a cent in costs. They argued issues relating to negligence. Workplace was a footpath open to the public. Head contractor gave up admitting they wouldnt pay for 24/7 security despite us recommending it in our standard T&C for every project. The $20m public liability claim is hard to win. Its not like Greenslips. Many think asset protection is v's tenants. Why ? One of the best asset protection mechanisms for any property is a mortgage.