Have been searching for information about trust structures and wondered what the most common one people use for investment in NSW is for asset protection without making finance difficult? My wife and I own several properties in Sydney tenants in common, but they are units so still under land tax threshold.
My accountant said most people use discretionary trust but this would mean we need to pay land tax on the properties in the trust. If use unit trust the proportion of ownership can still be covered by land tax threshold, but mortgage broker said unit trusts with are not good for finance, especially when use corporate trustee.
He recommended to use discretionary, with myself and wife being both trustees and beneficiaries directly. Does that still have the same asset protection benefits, or does it reduce the separate entity characteristic of the trust?
I'm planning to get more specific advice from a financial advisor or such, but wanted to get an idea what most investors use first so I don't get tricked by advisor into a chan& naylor hybrid trust or Natalie Grubisca 'vesty trust'"etc that more experienced investors would avoid.
My accountant said most people use discretionary trust but this would mean we need to pay land tax on the properties in the trust. If use unit trust the proportion of ownership can still be covered by land tax threshold, but mortgage broker said unit trusts with are not good for finance, especially when use corporate trustee.
He recommended to use discretionary, with myself and wife being both trustees and beneficiaries directly. Does that still have the same asset protection benefits, or does it reduce the separate entity characteristic of the trust?
I'm planning to get more specific advice from a financial advisor or such, but wanted to get an idea what most investors use first so I don't get tricked by advisor into a chan& naylor hybrid trust or Natalie Grubisca 'vesty trust'"etc that more experienced investors would avoid.
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