Possibly is to the trust.
Trust Bank Account, ABN and Tax file
- Thread starter LoneWolf
- Start date
Possibly is to the trust.
The application process is identical for tax agents and clients. One single question is missing "What is the tax agent no"....The ABN appn is also a TFN and PAYG and FBT and GST application ...It keeps giving. IMO clients mess it up !! The ABN and TFN will be issued to "The Trustee For the XCD Trust"....The company name isnt used. You can if you want to but the ATO will ignore it or you will run out of charecters !
There is no such thing as legal liability coverage for ANY trust deed. All legal services are covered by a professional scheme for negligence. However you must claim on the PI and prove it first. All deeds in Australia must be settled by a lawyer. Thus all deeds are covered by PI. Even DIY online ones have been drafted by lawyers. (ie Cleardocs = Maddocks.) Dont fall for these bogus claims of magical protection and insurance. The LAWYER has PI insurance not you or the deed. . Its more likely that when you compare two lawyers deeds you will find a issue anyway...Things like no streaming of income clause etc. Its not necessarily negligence. Its poor purchase decisions.
Yes, I think the deed would be covered by the drafting lawyer's PI insurance.
Yes, but what happens when the client asks the accountant who should be trustee? Who should be appointor?
Terry - Its not just accountants....
The adviser says you can add an appointer and they can change the trustee. You can add extra beneficiaries etc... Then doesn't follow the trust deed for the term of appointment and method. So it ist valid...The trustee was invalidly appointed so the ATO determined all income distributions were flawed and taxed the trustee.
This was a recent tax case on appeal. The lawyer who drafted the deed was a trust expert. And stuffed up his own trust. He came armed to battle the ATO in a tax case before the AAT and failed to establish that the trustee was validly appointed...A simple matter of fact. Hence s98 tax was assessed at the top marginal rate. The AAT found for the Commr in a prompt decision.
Establishing a trust is the easy bit. Maintaining it is harder.
The adviser says you can add an appointer and they can change the trustee. You can add extra beneficiaries etc... Then doesn't follow the trust deed for the term of appointment and method. So it ist valid...The trustee was invalidly appointed so the ATO determined all income distributions were flawed and taxed the trustee.
This was a recent tax case on appeal. The lawyer who drafted the deed was a trust expert. And stuffed up his own trust. He came armed to battle the ATO in a tax case before the AAT and failed to establish that the trustee was validly appointed...A simple matter of fact. Hence s98 tax was assessed at the top marginal rate. The AAT found for the Commr in a prompt decision.
Establishing a trust is the easy bit. Maintaining it is harder.
My point was that only lawyers should set up trusts because these are legal documents and relationships in equity (ie the branch of law) and a non lawyer wouldn't be covered by their PI insurance for this. A lawyer would, even if they set it up wrong.
Mistakes dont usually occur with creation of a trust. Its after. When someone adds, changes things. Distributes income to another trust, Distributes income to a company that doesnt meet the definition of beneficiary, Loses the deed, doesnt read the deed etc. PI cover on a 20 page document is trivial. I have found deed mistakes and these can be correcetd and emailed same day.
Tip : If your accountants cant read the trust deed to you and explain it all to you in plain english they shouldnt be doing your tax. You cant rely on the lawyer to look after the tax issues. A good accountant will ensure the lawyer who amends does so correctly too.
Now that I finally have setup my trust account, also waiting to hear back from accountant to setup my ABN, TFN and GST
In terms of treating this trust account, I will have rent coming in, and also mortgage repayments going out
Now, do I just try this account as any other account? transfer in / out as I wish
Or, there are more book keeping that I must commit to
In terms of treating this trust account, I will have rent coming in, and also mortgage repayments going out
Now, do I just try this account as any other account? transfer in / out as I wish
Or, there are more book keeping that I must commit to
The trustee can use it to receive income and pay expenses. Don't put any personal no trust money in there and operate it in accordance with the rules in the trust deed.
Hi Terry,
Put it simply. I will collecting rent on this account, and I would like to transfer this amount out, to offset my loan. And ideally I would like to transfer this amount on a monthly basis
I am not aiming to put more money into this account
Do you want to use trust money to offset your own personal home loan?
The trust would either have to lend you money or make a distribution and account for it all at the end of the year. what does the trust deed say about this, if anything?
