family trusts

From: Glenys Shepherd

Hi everyone

My 16yr old daughter and I are looking at a property in Townsville. Approx 3yrs old - 1km to Uni about 3km to Army base. It is currently renting for $240 and asking price is $175000.
I need to know how to go about this. Do I set up a trust and if so how do I go about that or is there an alternative?

Thanks in advance

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Reply: 1
From: Donna L

Bit unclear. If you have not done this
before, probably best to talk to a lawyer
about setting up the family trust but is this
because you want a family trust or
because you want your daughter on title?
Minors can own property in their own
name. It is more the tax implications if
she receives rental income, whether the
money she is investing is her own earned
income or a gift from you etc. So I would
go lawyer/accountant or tax lawyer to
advise on ownership and income issues.
You may find banks are unwilling to lend
to minors but if she satisfies all other
requirements, i.e. has deposit, has job,
can make repayments etc you can query it
under anti-discrimination laws.

Donna L
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Reply: 1.1
From: Rolf Latham

Hi Donna

Anti disc laws do not supersede the credit act in each state. A minor can not legally obtain credit because they can not legally consent to a binding contract as a minor. Any credit contract thus formed is not only null and void but the lender would also be breaking the consumer credit code.


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