Trusts and Pricing

[nhg]

Hi,

I am looking at opening a trust to purchase more property (on a much larger scale).

I am curious for those who have opened one recently, what where the associated costs, how much did your solicitor charge, and what services did they provide.

Have there been any loopholes you discovered after you set up your trust deed? Or things you wish you had thought of before opening the trust account.

Any and all advice would be greatly appreciated.

 

[DaveM]

Getting advice and costs off Terry W would be my first recommedation.

 

[RPI]

Most charge between $1500 and $2000 including a corporate trustee and advice.

You can do it online for much cheaper, however it is easy to stuff it up. Many cases of doing so.

D

 

[coastymike]

And the additional costs of stamping depending on the state

Nsw $ 500
Vic $200

 

[nhg]

Getting advice and costs off Terry W would be my first recommedation.

Already have

Just want to make sure in our next 3 hour chat I have the right questions to ask.

 

[monalisa]

Already have

Just want to make sure in our next 3 hour chat I have the right questions to ask.

Protection in an event of bankruptcy is one to consider.

 

[monalisa]

Hi,

I am looking at opening a trust to purchase more property (on a much larger scale).

I am curious for those who have opened one recently, what where the associated costs, how much did your solicitor charge, and what services did they provide.

Have there been any loopholes you discovered after you set up your trust deed? Or things you wish you had thought of before opening the trust account.

Any and all advice would be greatly appreciated.

I know this solicitor - he used to be a partner where I work, then went out to commence his own practice.

From memory he is charging $750 plus GST for Trust set up (excluding trustee).

I would recommend him on the basis of his experience.

It appears you have it all covered, as TerryW also specialises in tax - would be good to have the best of both - trusts and tax.

 

[bernardp]

If you are savvy enough I recommend Lawcentral:

www.lawcentral.com.au

We obtain plenty of documents for clients from this site of which I am in no way affiliated.

Creates all the docs for you and charges $275 for the trust ($129 if you are a platinum member - pay an annual fee type arrangement) -

Very easy to follow the steps through the process, very well designed site form ine.

As you are creating the trust for IP purposes individual trustees may be sufficient - something you will need to work out with your own research.

A corporate trustee may be necessary - you can also set this up on the website.

$500 for stamping the deed in NSW. If going online and doing so you will save yourself a fortune. Accounting firms make nice margins on setups.

DYOR - good luck.

 

[nhg]

Thanks everyone.

Tho for something that lasts 80+ years. I think I may go the lawyer route, make sure it is done right.

 

[Terry_w]

I had a guy from this forum contact me last year. He used an online provider for a deed and stuffed it up.

None of the interest on his loans was deductible (12 months of interest) and it would have cost him about $2000 to fix plus would have to redo all his loans and possibly pay stamp duty again.

Another one I seen where the main guy behind the trust had used his own son as settlor.

Another, named various family members as beneficiaries - bank wanted personal guarantees from all of them. They didn't even know about the trust.

The trust itself is very easy to set up. It is the 'how' and 'why' that you need the legal and tax advise on.

 

[RPI]

I had a guy from this forum contact me last year. He used an online provider for a deed and stuffed it up.

None of the interest on his loans was deductible (12 months of interest) and it would have cost him about $2000 to fix plus would have to redo all his loans and possibly pay stamp duty again.

Another one I seen where the main guy behind the trust had used his own son as settlor.

Another, named various family members as beneficiaries - bank wanted personal guarantees from all of them. They didn't even know about the trust.

The trust itself is very easy to set up. It is the 'how' and 'why' that you need the legal and tax advise on.

There is a reason our professional indemnity insurance is so dear.