Using an LOC to purchase via a Trust

Discussion in 'Accounting & Tax' started by New Town, 10th Mar, 2017.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    But what about the other major one. Security?

    Have you sought legal advice?
     
    Terry_w, 8th Nov, 2017
    #21
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Basically the trust would need capital from somewhere. Just think how would you find a property you bought if you had no cash.

    I have a legal tip on funding a new trust
     
    Terry_w, 8th Nov, 2017
    #22
  3. 316Kenny

    316Kenny Member

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    Didn't think about security at all. So loan to trust will be an unsecured loan which commercially will be a higher rate... hmmm...

    Lawyer - not yet. Please recommend someone if you know any! :)
     
    316Kenny, 8th Nov, 2017
    #23
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Loads of ways. Issue is does the trust have a debt and on what terms and could that expose risk if repayment is demanded ? etc

    Eg I had a relative once offer to lend to me (for a trust acquisition) on generous terms but I declined it as I had concerns for their death and need to repay it. They died a few months later. I wanted to avoid that issue.
     
    Paul@PAS, 9th Nov, 2017
    #24
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