Hi all,
Just wondering....can you set up a hybrid trust so that only one spouse owns any units in it, and then later on (years later) the other spouse then buys units???
I'm asking because my wife is in a litigious career whilst I am not. So we are thinking of buying IPs in the name of a hybrid trust, with me owning all of the units and the neg gearing benefits also going just to me. We aim to reach a point where we have enough passive income coming from the IPs (and some shares too, also owned by the trust) that we can retire (young hopefully). At that time, my wife's risk of being sued is gone (I hope) and then she could buy units in the hybrid trust so we can split the income between the two of us.
Is this OK, or does it all depend on how you draw up the trust deed?
Cheers
John
Just wondering....can you set up a hybrid trust so that only one spouse owns any units in it, and then later on (years later) the other spouse then buys units???
I'm asking because my wife is in a litigious career whilst I am not. So we are thinking of buying IPs in the name of a hybrid trust, with me owning all of the units and the neg gearing benefits also going just to me. We aim to reach a point where we have enough passive income coming from the IPs (and some shares too, also owned by the trust) that we can retire (young hopefully). At that time, my wife's risk of being sued is gone (I hope) and then she could buy units in the hybrid trust so we can split the income between the two of us.
Is this OK, or does it all depend on how you draw up the trust deed?
Cheers
John