Landlord name for IPs purchased in Trusts with Corporate Trustees?

[Hakuna Matata]

Hi guys

I self manage my own IPs and haven't come across this latest issue as previous IPs were just in my own name. I have recently created a Discretionary Trust (ABC Trust) with a Corporate Trustee (XYZ Pty Ltd). The name that the IP was bought in as listed on the Contract was "XYZ Pty Ltd ACN 123 456 789 as trustee for the ABC Trust".

Now I am wondering what I put down as the Landlord name on the Tenancy Agreement? I am conscious that for the sake of asset protection my Company XYZ Pty Ltd should not engage in business direct with the public so I am little confused...?! Options seem to be:

* XYZ Pty Ltd ACN 123 456 789 as trustee for the ABC Trust
* My name, Director and Secretary of XYZ Pty Ltd ACN 123 456 789
* My name
* ABC Trust

Any one else come across this and what did you list as your name on lease documents with tenants?

To tell the whole story all properties, whether purchased in personal names or Trusts have both myself and my wife on the paper work. I am the Director & Secretary of XZY Pty Ltd and she is Director of XYZ Pty Ltd. I have previously just listed my name on IPs purchased in personal names but perhaps I should list her too?

Cheers

Ben

 

[RPI]

No requirement to declare the company is acting in it's capacity as trustee. The ABN will be "The Trustee for the ABC Trust" if someone searches it but you don't need to declare it.

If you have no ABN or TFN for the company in it's own right that helps with confusion also.

 

[Terry_w]

A trust doesn't exist as a person, it is just a relationship so a trust cannot enter contracts.

The trustee is the one who enters contracts = company in this case.

 

[Hakuna Matata]

Thanks RPI - to clarify the Company has an ACN but I don't believe that a TFN was ever created for it.

Thanks Terry - Appreciate the advise about Trusts.

If I put both of your responses together then I should list the Lessor/Landlord as the Company Name "XYZ Pty Ltd ACN 123 456 789" and there is no need to list that the Company is acting as a Trustee or to even mention the Trust name at all.

From an asset protection point of view can you confirm that it is OK to list the Company Name "XYZ Pty Ltd ACN 123 456 789" as the Lessor/Landlord as I was under the impression that this Company wasn't supposed to interact with the public at all to prevent it being sued??

 

[RPI]

Fine for the company to do that.

Only the trustee can interact, the trust itself can't do anything in it's own name. A trust is only a relationship

 

[Marty McDonald]

Second that. No need to mention the trust
Imlo (in my laymans opinion)

 

[landlubber]

Coupla points as I understand it ( we have same structure sort of) ...
1) The responsible entity for all docs. is the corporate trustee. XYZ Pty Ltd.
2) This is 'normally' shown on contracts / leases etc ...as " XYZ Pty Ltd atf The ABC Trust" ...It just helps with tax returns etc .
3) Huge tip ....if you want to keep your sanity and your life simple ....never do any OTHER business in the name of XYZ P/L directly .... keep it as solely the corp. trustee. Nothing else. NOTHING ....
4) Signatories ....Docs are signed by whoever is / are the director/s of XYZ P/L. If it's a sole director company then only one needs sign. ( This works well as the other partner can then be witness ...) If two directors, both sign.

There you go ... send me $2K for the fee hahaaahaaaa
LL

 

[Terry_w]

From an asset protection point of view can you confirm that it is OK to list the Company Name "XYZ Pty Ltd ACN 123 456 789" as the Lessor/Landlord as I was under the impression that this Company wasn't supposed to interact with the public at all to prevent it being sued??

I think you misunderstand.

A trustee must enter contracts - there is no other choice. The trustee company can be sued and the trust assets will all be exposed if it is sued. A trust can't be sued because it is not a legal person, but the trustee cops it and then is reimbursed out of the assets it holds for the trust.