So I have an "old" hybrid trust (ala Dale GG and Chris Batten style). It was created in 2004 and not "used" much since then, other than paying accountants and ASIC fees. The original intent of it's setup changed so was never used to acquire property. If I were to start using it now (to purchase two properties), I am sure much has changed in the world of ATO rulings and what is allowed or not. Is this correct? Not sure if it is worth while me researching all the changes or going through the process again and setting up a new trust according to my accountants thoughts on how it should be done to purchase property now.
Hybrid trust changes since 2004?
- Thread starter farmingfuture
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I worked at MGS with Chris and am familiar with changes. While your deed IS outdated the other concern may be operating the hybrid trust in a manner that does not comply with recent ruling and views.
The deed can be amended and the OSR / ATO aren't concerned with a resettlement in most instances.
I would firstly want to ensure that the trust still has trust assets or it may be argued the trust has ended.
It may not be a wise choice to use a hybrid trust as few lenders will loan funds where a hybrid is being used. The banks legal advice doesn't encourage them to lend to a trustee for a HDT etc. There is also a land tax issue that wasn't a problem in 2004. Depends where the property is.
The deed can be amended and the OSR / ATO aren't concerned with a resettlement in most instances.
I would firstly want to ensure that the trust still has trust assets or it may be argued the trust has ended.
It may not be a wise choice to use a hybrid trust as few lenders will loan funds where a hybrid is being used. The banks legal advice doesn't encourage them to lend to a trustee for a HDT etc. There is also a land tax issue that wasn't a problem in 2004. Depends where the property is.
Thanks Paul 
It is NSW. One is land only, the other is an operating property (WIWO).
It is NSW. One is land only, the other is an operating property (WIWO).
