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There is another two major benefits of holding property in a unit trust with all the units held by the hybrid trust. I know that this is making the structure slightly more complex but perservere with me. The first is that holding a residential property in a standard DT or even a hybrid trust...

What is going to happen however when the person finds out they cant get the taxation benefits from negative gearing. This could mean the difference between affording of the property and not being able to afford it. Can you imagine explaning to a client that if they have a $10k per annum loss...

Terry, Id suggest you register for Chris Batten's site www.chrisbatten.com and download the article on negative gearing through a trust. All is explained in that article. A plethora of other information as well. For $99.00 (from memory) for 3 months it is excellent value for those seeking...

Bill, Agreed that the individual with the loan in their own name will attract some interest. However if the loan to purchase the special income units has been secured by first mortgage to the trust then what will happen is that the individual would still have nothing available to creditors...

Bill, Firstly just want to say Im enjoying the discussion and good to see someone who is willing to discuss these issues. Now I am certainly not a lawyer so I'll qualify any comments I make by saying that I will defer to the experts. But let's assume someone gets hit by a rock in the...

GGump That is incorrect. Trust loss provisions regarding carrying forward of trust losses start from the first dollar (or technically first negative dollar).

HDT do compromise the asset protection slightly but remember the individual will have borrowed funds to purchase special income units. Now when the lawyers starting looking for assets one thing that you will hold will be special income units (an asset) but remember you still have a loan to the...

TerryW, The answer is yes.

Bill, I agree that hybrid trusts can be difficult for the average person to understand. However if you want to obtain the benefits of negative gearing to the highest income earner and also hold the property in a trust how can it be done without the use of a HDT. In this case the individual...

I saw a similar article in a weekend real estate paper talking about bullet-proof asset protection. Interesting that the individual said "He said asset protection involved a $3,000 - $5,000 one-off payment". Im not sure whether this includes tax file number registration, issuing of special...