Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Is a discretionary family trust right for me?

Notify me of new replies via email
Your Investment Property | 13 Oct 2011, 12:00 AM Agree 0
Question: I plan to buy my first property in Melbourne soon. I will live in this property for a minimum of six months, renovate it, and rent it out as an investment property. I’ve heard that borrowing via trust structures can be useful: What are the main pros and cons to using a discretionary family trust structure?
  • John | 23 Sep 2013, 04:40 PM Agree 0
    Using a Trust for tax benefits is silly thinking and can end up in a problematic situation. Trusts first and foremost should be used for asset protection. A house in your name is an asset you can lose plain and simple. A house in a trust is another matter. If it's setup properly with a genuine settler and genuine settlement amount then it's very difficult for a sueing party to seize the asset. The tax benefits of using a trust do exist at the very low end of the income scale. Real Mom and Pops stuff. Then you you have to way up the accounting fees of running the trust versus the benefit.
Post a reply