Hello,
I have three IPs owned within a hybrid family trust.
The unit-holding structure is 50/50 between my husband and me. There is debt on all three properties.
My accountant is telling me that any income derived from these properties can ONLY be distributed according to the unit-holding structure.
That is, we cannot discretionarily distribute any of the income from these properties to other family members.
I am really confused, as I thought this was the whole point of having a hybrid trust?
Or does the restriction she is describing only apply while there is still debt owing on the properties?
Can someone explain for me, please?
Thank you.
I have three IPs owned within a hybrid family trust.
The unit-holding structure is 50/50 between my husband and me. There is debt on all three properties.
My accountant is telling me that any income derived from these properties can ONLY be distributed according to the unit-holding structure.
That is, we cannot discretionarily distribute any of the income from these properties to other family members.
I am really confused, as I thought this was the whole point of having a hybrid trust?
Or does the restriction she is describing only apply while there is still debt owing on the properties?
Can someone explain for me, please?
Thank you.