Search results

I dont know the answer, but a product ruling would only apply to the specific product. With trusts they are constantly changing because of legislation changing and because of ATO treatment of trusts changing. They are also being constantly improved with clauses being redrafted to give better...

How confident are you that this trust can operate in perpectuity? (incidently any trust properly set up in South Australia could claim no vesting date - but I am not so sure this means the trust can last in perpetuity).

The settlor (or his children) isn't prohibited from benefiting from the trust, but there will be adverse tax consequences. As a result many trust deeds would have clauses in the deed excluding the settlor as a beneficiary. this would be the case whether the settlor actually receives money or...

EV, You will have problems wth finance as the title to the trust property will be in the trustee's name. But to claim a deduction the unit holder has to borrow to buy the units so the loan has to be in their name. The trustee and the unit holder cannot be 100% the same, otherwise there would...

EV I think you should read this thread (even if you struggle!) as all the answers are here. The Hybrid trusts that Chris is talking about are essentially unit trusts which enable the trustee to redeem the units at some time in the future. This will allow the unit trust to cover to a...

This would be a fairly serious crime. The offender has probably breached a few sections of the Crimes Act (probably both state and cth acts), Privacy Act and the various Tax acts

Tell em you will have that press conference now!;)

Very good Strategies Mike. Has to be carefully planned and implemented.

Hi Coasty The gift would probably be caught by the clawback provisions in the Bankruptcy Act. If done with the intention to avoid creditors the gift could be clawed back indefinitely. If no intention then it could be for up to 10 years (from memory). There may be ways around this though...

Paul Stamp Duty on trust deeds is governed by the Duties Act in NSW, s58 http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s58.html States $500 duty is payable if the deed is executed in NSW. I recall the OSR previously had on their website something concerning this and...

Chris, May I pick your brain again, going slightly off topic? Do you now of any way to add property to a testamentary trust and be able to get the minor’s tax concession from its income under s 102AG?

Thanks Chris. There are many unknown issues here I think, such as: - What about the Common Laws rules against perpetuities, - Must appointor reside in SA?, - must settlor reside in SA? - must settlement occur in SA? - place of administration of the trust, - domiciling the trust in SA...

I am running out of questions, but we need to keep this discussion going. Chris, what about the land tax issues, with a fixed unit trust that qualifies for a land tax threshold in NSW. If units are held by a discretionary trust or a hybrid trust, will the trust get the tax free threshold?

Hi Chris I had never heard of that super funds before your post. I don't know anything about it and don't know much about SMSFs at all. So I don't know the answer to your question. Maybe it is the trustee declaration form?

Chris, while we are at it can we talk about the laws against perpetuities. Do you see having a trust come under the laws of South Australia enabling the trust to continue on past 80 years? Its too long for me to 'wait and see'. (SA is the only state in Australia without legislation...

Thanks for all your detailed replies Chris, May I ask about the asset protection issues with a hybrid trust. The units would be classed as property under the bankruptcy act and could therefore fall into the hands of creditors. Drafting the deed so that the units could be worthless on...

Thanks Rob. Without ever looking into it I had thought the refinancing principle was killed off by TR 2005/12. But it appears it is still available. In my example it would be a huge problem if only the $400,000 was consdiered the returnable amount. This would mean the interest deduction...

Hi Chris Thanks for you time explaining this and your articles. I have read your paper on the refinancing principle now, and have a hypothetical example: A $400,000 property is purchased by the trustee of XYZ Hybrid Discretionary Trust with Mr Smith borrowing $400,000 and being issued...

Chris, Another question: Under what circumstances do you see a hybrid trust being beneficial? Could you please give an example?

Hi Chris Thank you for posting this information. I have a question, do you think that the amendments of some trust deeds may result in resettlements of the trust occuring?