Has anyone set up a trust and used it to buy property? How much does it cost you to set and run on a yearly basis? Is it more difficult to buy property with, and is it a good vehicle for passing on what you accumlate to your kids? Does the cost justify the means (assuming you'll die a natural death in 30-40 years).
There was a similar post here recently about this. heaps of people have used trusts to purchase property. I charge $1650 to set up a trust, including legal advice. Running costs vary from nil to about $770 for a trust with 1 property for a tax return. Not necesarily a good way to pass assets on to children as trust assets are not your assets to pass. You may control a trust and can arrange for the control to be passed. A better way would be to pass your assets on death to a discretionary testamentary trust as this would provide better asset protection and potentially more tax savings - after you die. Costs justifies the means in many cases, but there can be downsides such as reduced cash flow with any losses not offsetting your personal tax. There could be more land tax in some states, but less in others.
Thanks Terry_w. Does the cost add up, the more property you buy? At what point does it cost $0, and at what point does it cost $770? p.s. I'm not in a business or wealthy enough to bother suing.
He's saying that's just the cost of the trust's tax return, similarly to you and I doing a tax return each year the trust must do one as well. So tax return might cost you $0 if you do it yourself, or $770 if you have an exorbitant accountant, or anywhere in between.
It costs nothing if the trustee does its own tax return. Yes, generally the tax agents will charge more as the tax return gets more complex, this is the same whether a trust or a personal name owns property
Sort of - the costs are mainly accountant costs - so if you do you own return or there is nothing to declare, the cost might be $0. If you have a corporate trustee, you'll also pay an annual ASIC fee. The Y-man
