Hi, Excuse me for asking a basic question, but I have not found an answer online. I have a few IPs in my name. As I build equity each IP, I draw on it to purchase new IPs. I have started looking at trusts for asset protection and tax advantages. Commonly people purchase IPs in trusts, one IP per trust. How does a person draw equity from an IP in a trust to purchase a new IP in a new trust? I have seen some references to people on-lending to trusts for negative gearing: Tax Tip 89: Borrowing and onlending Interest Free to a Discretionary Trust Unit Trusts and the 2 methods of Borrowing Does keeping the lending outside the trust make a difference to how a persons would access the equity? Thanks
See my other legal tax and loan tips on this. Trustee can potentially borrow and use money or onlend to related entities
