Property trust

[tarah]

Hi all,

I am contemplating putting a property I have inherited into a trust rather than my own name. The property will still have a mortgage against it but it will be positively geared in approx 6mths.

After speaking to my accountant he said there will not be any tax savings but it is the best way to hold property (in a trust) for asset protection and to also save on land tax.

Does everyone agree the best way to hold property is in a trust or should I just hold the property in my own name like the rest of my PI's (these are all -ve geared so can't offset against my personal income if in a trust anyway)?

Thank you!!
Tarah :D

[NedKelly]

There are many threads on this if you do a search. There are also a thousand and one opinions about whether it is the best thing to do.

Don't forget the set up fees and ongoing fees your accountant will charge, the extra paperwork and the stamp duty when you transfer the property to the trust.

[AVD]

From a tax point of view there can be tax savings, if you have children or a spouse on a lower income threshold than you and the trust is discretionary then you can distribute some of the profit to the children each year (if they are small children you can distribute a certain amount that they obviously will pay no tax on) and you can distribute some to a spouse, even a company if you are on a higher tax bracket than 30%.

Alysha