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Well, unit trusts are totally different to discretionary trusts. There are many differences between the two in terms of tax, legal and asset protection issues. A unit holder of a unit trust could borrow to buy an interest in the trust - but this would not be possible for a beneficiary of a...

I think you misunderstand. I don't think what Dale is saying is wrong. It is just not as simple as you think.

Hi Reeco Yes, I do believe that a DT is good for a high income earner - the higher the income the better they are! Say you do use a HDT, the property you buy will not be negative cashflow forever. It will hopefully start making money in a few years. Then you will have the problem of paying...

When you argue over tax you need to back up your arguments with citations of legal authority such as legislation or case law, secondary authority such as ATO rulings or interpretive decisions can also help - but the ATO doesn't always interpret the law correctly. Citing a popular book is...

its what the book doesn't tell you that is important. Firstly what is the benefit of having it in a company name rather than your personal name - there are some, but probably not as much as you think. Then the potential double CGT of a hybrid. When you sell your units back to the trust (so...

Doesn't make sense. How can you claim a tax deduction for something owned by someone else?

Yes you could use a unit of hybrid trust. You borrow money to buy units and then you personally claim the interest. This may result in you being able to claim the losses from interest initially. But, what is the point? Why not buy in your own name instead.

Using a trust won't help you with tax deductions against your income. Unless, maybe, you are employed under a trust.

Possibily the legal risks and complications. When a person uses a hybrid trust the property is owned by a company and the loan needs to be in a person's name. This means the title holder (the legal owner) and the borrower are different. Try getting a loan in your name on your mum's property...

I missed that. How do unit trusts and hybrid trusts provide asset protection?

hi Gavsam you are comparing this to investing in shares, but there is one crucial difference between investing in shares and 'investing' into a discretionary trust. With share you will be getting income from dividends or capital gains. If there is an income you will get it, no discretion...