Just bouncing around some ideas for structuring next purchases and looking for ideas before I talk to my professional advisers.
Currently have:
1. Discretionary trust with corporate trustee - used for running business out of with significant profits distributed to beneficiaries each year. Call this Trust1.
2. Discretionary trust with individual trustee - used for holding some shares. Call this Trust2.
3. IP's in individual names.
If I was to purchase additional IP's in a trust structure, do I:
a. Create a completely separate discretionary trust with corporate trustee.
b. Create a unit trust with corporate trustee and have the units held by Trust2.
c. Create a fixed unit trust with corporate trustee and have the units held by me (or my wife) individually.
d. Something else I haven't thought of?
Regards,
Jason
Currently have:
1. Discretionary trust with corporate trustee - used for running business out of with significant profits distributed to beneficiaries each year. Call this Trust1.
2. Discretionary trust with individual trustee - used for holding some shares. Call this Trust2.
3. IP's in individual names.
If I was to purchase additional IP's in a trust structure, do I:
a. Create a completely separate discretionary trust with corporate trustee.
Notes:
Could distribute profits from Trust1 to new trust to soak up any initial losses in this new trust (if property was negatively geared).
Wouldn't get a land tax free threshold anywhere but Qld?
Flexibility for distributions of income, and CG down the track.
Could distribute profits from Trust1 to new trust to soak up any initial losses in this new trust (if property was negatively geared).
Wouldn't get a land tax free threshold anywhere but Qld?
Flexibility for distributions of income, and CG down the track.
b. Create a unit trust with corporate trustee and have the units held by Trust2.
Notes:
Any negative gearing losses would occur for Trust2 - so could distribute from Trust1 to Trust2 to utilize them if the share income from trust 2 doesn't already.
Wouldn't get a land tax free threshold anywhere but Qld?
Flexibility for distributions of income, and CG down the track.
All the various unit trust advantages that Terry outline here (http://somersoft.com/forums/showthread.php?t=89302)
Any negative gearing losses would occur for Trust2 - so could distribute from Trust1 to Trust2 to utilize them if the share income from trust 2 doesn't already.
Wouldn't get a land tax free threshold anywhere but Qld?
Flexibility for distributions of income, and CG down the track.
All the various unit trust advantages that Terry outline here (http://somersoft.com/forums/showthread.php?t=89302)
c. Create a fixed unit trust with corporate trustee and have the units held by me (or my wife) individually.
Notes:
Any negative gearing losses would occur for unit holder - so can utilize them immediately.
As long as fixed unit trust get access to land tax threshold of beneficial owner (I think?).
No flexibility for distributions of income, and CG - however get the various unit trust advantages that Terry outline here (http://somersoft.com/forums/showthread.php?t=89302). So maybe able to transfer units to Trust2 or SMSF down the track?
Any negative gearing losses would occur for unit holder - so can utilize them immediately.
As long as fixed unit trust get access to land tax threshold of beneficial owner (I think?).
No flexibility for distributions of income, and CG - however get the various unit trust advantages that Terry outline here (http://somersoft.com/forums/showthread.php?t=89302). So maybe able to transfer units to Trust2 or SMSF down the track?
d. Something else I haven't thought of?
Regards,
Jason