Ongoing Fees for a Hybrid Disc Trust if it does *nothing*

[Kevmeister]

If you created a trust with the intent of not using it for a while (like when the right property comes along), what would the likely ongoing costs be whilst it was not doing anything?

I realise this probably depends on the accountant's charging regime etc, but I'm just after a ballpark.

I really like the idea of using a Hybrid Disc Trust when we purchase our first [investment] property - I'm not particularly worried about the Asset Protection aspects but I like the income splitting benefits and the ability to negatively gear from day one.

Problem is, when you get into that heady time of entering into a contract for your first IP, going through the process of arranging a trust at the same time might be "all a bit too much" so one might opt for the easy way out (ie. put property in own name).

 

[darryl]

Assuming no accounting costs there is a $200 annual ASIC registration fee if you have a corporate trustee.

Darryl

 

[DaleGG]

HI

Somewhere around $200 perhaps, but, if the accountant also does the annual return for the company trustee and the individual returns it might get a little dearer . . .

Dale

Originally posted by Kevmeister
If you created a trust with the intent of not using it for a while (like when the right property comes along), what would the likely ongoing costs be whilst it was not doing anything?

I realise this probably depends on the accountant's charging regime etc, but I'm just after a ballpark.

I really like the idea of using a Hybrid Disc Trust when we purchase our first [investment] property - I'm not particularly worried about the Asset Protection aspects but I like the income splitting benefits and the ability to negatively gear from day one.

Problem is, when you get into that heady time of entering into a contract for your first IP, going through the process of arranging a trust at the same time might be "all a bit too much" so one might opt for the easy way out (ie. put property in own name).

 

[paulzag]

From July 1 ASIC no longer chases a company Annual Return. The whole regime has changed.

Now it's two statements by directors and a fee on the anniversary of the registration date. The fee is not yet established, but I'd guess it will be similar to the $220 or so annual return fee.

If your hybrid trust has never traded there shouldn't be other costs unless you seek advice from professionals.

Regards

Paulzag
Dreamspinner