Legal entity structures for property portfolios

[Dingus]

ok. but is that trust a fixed trust?

I am still working through but that is the plan... the only unit holder will be myself and/or a company with no discretionary element and units measured at NAV. But will need to research further as to whether I can utilise my land tax threshold in NSW, and how a company as joint unit-holder will affect that.

I can definitely say that all this research is quite fascinating!

 

[Terry_w]

I am still working through but that is the plan... the only unit holder will be myself and/or a company with no discretionary element and units measured at NAV. But will need to research further as to whether I can utilise my land tax threshold in NSW, and how a company as joint unit-holder will affect that.

I can definitely say that all this research is quite fascinating!

Needs to be fixed for the land tax threshold - the unit holders will be considered owners in proportion to their ownership of units.

 

[Dingus]

Continuing on the topic of Trusts. Can a Unit Trust be converted to a Discretionary Trust in time (once units have been redeemed)?

As the trustee will be on the title for any property investments, I am assuming no CGT/Stamp Duty impacts? Only Land Tax as I believe discretionary trusts have no threshoold (NSW).

 

[Terry_w]

Continuing on the topic of Trusts. Can a Unit Trust be converted to a Discretionary Trust in time (once units have been redeemed)?

As the trustee will be on the title for any property investments, I am assuming no CGT/Stamp Duty impacts? Only Land Tax as I believe discretionary trusts have no threshoold (NSW).

A unit trust could possible change into a discretionary, depending on how it is drafted. Stamp duty and cgt issues. Could be exempt from stamp duty in some instances in some states but CGT would apply.