Hybrid Trust - signing contract

[Lukey13]

My wife and I are likely purchasing our first IP in a few weeks and we were thinking of using a hybrid trust on advice from an accountant.

My question is, do we need to set this up before signing a contract to buy, or can we sign the contract in our names and then approach our accountant to have the hybrid trust taken care of?

Also, when applying for finance (which we're currently doing) do we need to mention anything about the IP being purchased within a hybrid trust?

 

[Qlds007]

Lukey

1) Yes the Trust Deed must be dated prior to the date of the contract.

2) Certainly you must advise your financier as many lenders will not lend where a HDT is involved. The lenders legal department will want to examine the signed and dated Trust Deed to ensure it complies.

 

[oasis1frog]

Lukey

2) Certainly you must advise your financier as many lenders will not lend where a HDT is involved.

I am surprised that many lenders will not lend to HDT, as HDT has been/was heavily promoted by certain accountant(s) on SS.

 

[Qlds007]

oasis

It is not of matter of not finding anyone however the range of lenders is reduced.

 

[soyabean]

Lukey

The lenders legal department will want to examine the signed and dated Trust Deed to ensure it complies.

And they will likely charge you a fee for doing this.

 

[Lukey13]

Lukey

1) Yes the Trust Deed must be dated prior to the date of the contract.

2) Certainly you must advise your financier as many lenders will not lend where a HDT is involved. The lenders legal department will want to examine the signed and dated Trust Deed to ensure it complies.

Thank-you Richard.

So is there anything I can do to set up the process of entering into a hybrid trust? How complex is it for an accountant to do? I'm just guessing that I'm likely to be hit up with some scary fees by him to have this done.

If it's necessary though, I would much prefer to have it and the finance ready to go so I can snatch up a contract when I'm ready to.

 

[Qlds007]

Lukey

Your Accountant would be able to obtain a Trust deed in 24-48 hours.

Just ask him for a quote and if you think it is too much use another Accountant.

Once you have this get your mortgage broker to shop around for finance and obtain a pre-approval subject to signing a contract and finding a property.