Search results

Julia, when you say 'other ways that achieve the same thing and they are cheaper', what are you referring to? Alex

Isn't individual assets limited to the value of the trust units? e.g. if you start with a $200k trust, with $200k worth of units, and in 10 years the trust assets are worth $400k, then even if the individual gets sued the creditors would only get a max of $200k from the trust assets.

I agree. All you can say is that you have a basis for arguing it in court, but how the ATO or the courts respond is anybody's guess. Though I assume in the absence of specific case law lawyers and accountants who are advising clients to use HDTs are using arguments based on accepted legal...

Also, I'm interested in hearing comments on the issue of the unit holder giving up a portion of the future capital gains. One can use the same argument of putting a property into a trust: the individual loses ALL claims to future income and CG, but putting an asset into a trust is a legally...

Imagine an annuity where you get paid 3% for the first year, and then the income increases by 7% a year for life. You borrow to buy such an annuity. I think that would satisfy the income test, even though you never get capital gains. An IP's rent pretty much tracks the value of the...

Dale, in this case am I right in saying that the employee also 'saves' on not having to pay mandatory super on the salary sacrificed portion? And the employer gets to save on FBT, payroll taxes, etc (it would be as if the employer paid the employee less in total)? Alex