hybrid discretionary trust

[2die4]

Hi everyone,

Been reading on Family trust & it seems the way to go is Hybrid trust. What i am abit confused about is that when i approach my accountant do i tell him to set up a HYBRID TRUST or a HYBRID DISCRETIONARY TRUST ? Is there a different ? or what about a HYBRID unit trust ????

As you can see i am confused. Any clarification much appreciated.

cheers

 

[Reeg]

Howdy 2die4,

I reckon make it as explicit as you can. If it is the hybrid discretionary trust you want then ask for that. Then there can be no mistakes. There is a difference between the two but I am not expert enough to explain them.

Richard.

 

[2die4]

Unfortunately, my accountant is not an expert on the topic either.

I like to purchase a propertie to live in but like the idea of able to negatively gear and other claims.

I have read Dale's Trust Magic and E Renton "Family Trust" but still like to further understand this topic.

Can someone recommend any other material(books,web sites......) that have a good explanation and few examples of some of the items that can be claim as tax deduction and the limit for each items(cost,number of times per financial year).

Thanks in advance.

2die4
Cheers

 

[paulzag]

Originally posted by 2die4
Unfortunately, my accountant is not an expert on the topic either.

I like to purchase a propertie to live in but like the idea of able to negatively gear and other claims.

That is what you ask for. It isn't your job to be an expert on the jargon. Tell your accountant what you want and he should seek further advice and guidance if necessary.

Avoid jargon as you learn and practice asking your professionals for the outcome you desire. It will make you a fortune.

Originally posted by 2die4
I have read Dale's Trust Magic and E Renton "Family Trust" but still like to further understand this topic.

Can someone recommend any other material(books,web sites......) that have a good explanation and few examples of some of the items that can be claim as tax deduction and the limit for each items(cost,number of times per financial year).

Chris Batten's Site at http://www.chrisbatten.com.au/ is the populariser of hybrid trusts. Beware he is on the ATO's radar and I wouldn't want to be a client - although I've met and like the guy.

Dale Gatherum-Goss's site at http://www.gatherumgoss.com/ is also a wealth of information.

Brett Davies Lawyers at http://www.taxlawyers.com.au/ is also valuable.

Regards

Paulzag
Dreamspinner

 

[beech]

Can someone recommend any other material(books,web sites......) that have a good explanation and few examples of some of the items that can be claim as tax deduction and the limit for each items(cost,number of times per financial year).



Y ou ask for explanations & examples

i suggest searching this forum because there is an unbelievable amount of info re trusts.

plenty of questions answered by Dale & Nick

 

[Kitkat]

2die4 my feeling on this subject is that you need a new accountant, one that is fully up to date and aware of exactly the best trust structure for you. If at present he/she is unaware of the subject of trusts then when it comes to utilising the trust in to your best advantage you may miss out.

 

[2die4]

Thanks for everyone responses.

Now, could anyone recommend an accountant that is working in brisbane that may have better understanding of trust setup

many thanks

 

[NickM]

Hi 2die for

i would be more than happy to answer your questions on hybrid discretionary trusts.

I assume that you will not be attending my presentation on Wed nite so feel free to call me or provide me with your details and i will post you up a copy of my presentation on Investment structures.

NIckM

 

[2die4]

Hi NickM

Not aware of what's plan for Wed ! Is it your seminar or what ? Tell me about it & i'll check it out.

What i wanted to do is negative gear under a trust structure so what is the best set up - hybrid discretionary the way to go ? What is the different between a hybrid discretionary & hybrid unit trust ? or are they the same thing ? please excuse my ignorance on this topic.

thanks

ps : i passed your info to my friend in sydney who's looking for accountant & financial advisor.

 

[NickM]

the seminar details are in Meteing Point

A Hybrid Discretionary Trust would appear to be the most suitable for what you want to do.

I find a Hybrid unit trust is more relevant when you have 2 or more unrelated parties that want to run a business together.

My website has more info and feel free to call if you wish to discuss your situation.

NickM

 

[beech]

hi NickM would it be possible to post a copy of your presentation here for all of us see?

beech

 

[NickM]

Beech
The presentation is detailed on my website under structures.

basically it addresses the advantages and disadvantages of owning property under various structures.

Most of my presentation was centred around the whiteboard and explaining how trusts work and the application of the principles to various tax minimisation and asset protection strategies.

If you have any questions, please post them and i will do my best to assist you.

NIckM

 

[beech]

Ok Nick i shall have a look.

thanks

 

[bubbleroo]

Hi all,
just been advised by my accountant that there is no benefit in setting up a hybrid trust as compared to a discretionary one. He advices that one can still have negative gear property under discretionary by 'charging the interest' to the trust. He also pointed out that it's cos $990 for hybrid & $500 for discret (in qld). so told me to opt for the later of course. Is he right ? I am too confused !

Dale please clarify.

 

[DaleGG]

Hi

I believe that your accountant may not properly understand the tax rules for trusts.

You cannot negatively gear a family trust by you borrowing money and on lending the money to the trust.

Sorry to confuse you further.

Dale

Originally posted by bubbleroo
Hi all,
just been advised by my accountant that there is no benefit in setting up a hybrid trust as compared to a discretionary one. He advices that one can still have negative gear property under discretionary by 'charging the interest' to the trust. He also pointed out that it's cos $990 for hybrid & $500 for discret (in qld). so told me to opt for the later of course. Is he right ? I am too confused !

Dale please clarify.

 

[bubbleroo]

Thanks Dale for all your help. Too bad you are in Melbourne.

Could someone recommend an accountant in brisbane that have good understanding of 'trust' (esp hybrid trust). Love to chat to him/her soon.

Many thanks

 

[Kris Sheather]

Physically being in the same area as your accountant shouldnt really matter as these sort of things can be sorted out over the phone and by email, so distance should be no barrier!

 

[perky29]

Hi,
Use Dales office - I am in Sydney and I do....

 

[Homer J Simpson]

Originally posted by DaleGG
Hi

I believe that your accountant may not properly understand the tax rules for trusts.

You cannot negatively gear a family trust by you borrowing money and on lending the money to the trust.

Sorry to confuse you further.

Dale

Can you negatively gear your own personal income if you were to obtain a line of credit from the bank and using the whole line of credit to purchase the property in the trust name. Thus the trust owes you the interest for lending it money?

 

[NickM]

Homer
what you would do is use your line of credit to purchase income units in the Hybrid Trust, therefore enabling you to claim a tax deduction on the interest.

If you borrow money and lend it to a trust there will be no negative gearing benefit.

Compare it to purchasing units in a managed fund. the same principle applies.

Nick