Hybrid Unit Trust -vs- Hybrid Discretionary Trust
- Thread starter sunnywan
- Start date
I think if you check out NickM's website, the answer to your question is on his structure page.
http://www.strategicwealthmanagement.com.au/e2content.asp?Request=Structure.Structure
Hope this helps.
http://www.strategicwealthmanagement.com.au/e2content.asp?Request=Structure.Structure
Hope this helps.
Still not sure
NickM's site explains Unit, Discretionary and Hybrid trusts beautifully.
However I have seen on many occassions two different permetations to the Hybrid Trust:
1. Hybrid Unit Trust
2. Hybrid Discretionary Trust
Eg, take a look at the Chris Batten website where there are references to:
1. Unit Trusts
2. Hybrid Unit Trusts
3. Discretionary Trusts
4. Hybrid Discretionary Trusts
and more...
NickM's site explains Unit, Discretionary and Hybrid trusts beautifully.
However I have seen on many occassions two different permetations to the Hybrid Trust:
1. Hybrid Unit Trust
2. Hybrid Discretionary Trust
Eg, take a look at the Chris Batten website where there are references to:
1. Unit Trusts
2. Hybrid Unit Trusts
3. Discretionary Trusts
4. Hybrid Discretionary Trusts
and more...
Sunnywan
A Hybrid Unit trust is essentially a standard unit trust. However the trustee of this type of trust has the power to issue Special Income Units to unitholders. All other units are regarded as ordinary
The Hybrid Disc trust is the one that is most flexible as it is essentially a discretionary trust and the trustee here also has the ability to issue special classes of units.
I hope this clarifies your query
Cheers
NickM
A Hybrid Unit trust is essentially a standard unit trust. However the trustee of this type of trust has the power to issue Special Income Units to unitholders. All other units are regarded as ordinary
The Hybrid Disc trust is the one that is most flexible as it is essentially a discretionary trust and the trustee here also has the ability to issue special classes of units.
I hope this clarifies your query
Cheers
NickM
Perhaps it's just a matter of semantics Nick, but what you call a HUT, I would have said is just a unit trust with lots of flexibility in the trust deed.
What you call the HDT is what I'd refer to strictly as a Hybrid Trust. As you note, for most investor's purposes it is what you call the HDT which is of benefit because you get the best of both worlds - the ability to income stream via discretion as to distributions but also the ability to personally borrow to buy units in the trust with the resulting ability to offset the PERSONAL interest expense against other income sources such as wages/salary.
i say tomato...you say..
Cheers
N.
Nick,
I have spoken to Dale regarding hybrids a few times. It seemed to him the last time we spoke that they were very good but there was still a little niggling doubt about the protection a hybrid trust offers.
As you seem to know quite a bit about hybrid trusts, are you able to address this issue for me? My partner and I will be looking at the possibility of setting up a trust in the near future and although negative gearing won't be an issue in relation to the particular investment we are currently looking at, we were just curious as to the general issue of asset protection within a hybrid, as this issue is the most important one for us in the possibility of setting up a trust.
Mark
'no hat, some cattle'
I have spoken to Dale regarding hybrids a few times. It seemed to him the last time we spoke that they were very good but there was still a little niggling doubt about the protection a hybrid trust offers.
As you seem to know quite a bit about hybrid trusts, are you able to address this issue for me? My partner and I will be looking at the possibility of setting up a trust in the near future and although negative gearing won't be an issue in relation to the particular investment we are currently looking at, we were just curious as to the general issue of asset protection within a hybrid, as this issue is the most important one for us in the possibility of setting up a trust.
Mark
'no hat, some cattle'
Hi Mark
I am sure that Dale's advice would have been accurate as he seems to have a good handle on the operation of trusts.
I posted some detail on hybrids and asset protection a week or so ago. There is a limited risk which i believe can be addressed if litigation arises.
I also have some info on my website that may explain it a little better for you.
If you are still unsure of where you stand feel free to call me.
NickM
I am sure that Dale's advice would have been accurate as he seems to have a good handle on the operation of trusts.
I posted some detail on hybrids and asset protection a week or so ago. There is a limited risk which i believe can be addressed if litigation arises.
I also have some info on my website that may explain it a little better for you.
If you are still unsure of where you stand feel free to call me.
NickM
