Trusts: What do you want to know
- Thread starter Terry_w
- Start date
Hope you have an editor!
pinkboy
I new I would make a mistake!
That was a joke too btw.
I was planning a book more on the legal side of things, in plain language rather than legal speak.
But I will be including some tax aspects and other practical stuff too - which most of the books leave out. In law school you learn about trusts (briefly) but never any practical uses for them and most lawyers have no idea, most members of the public would have even less of an idea - except for somersoft members who generally have a good understanding.
I was planning a book more on the legal side of things, in plain language rather than legal speak.
But I will be including some tax aspects and other practical stuff too - which most of the books leave out. In law school you learn about trusts (briefly) but never any practical uses for them and most lawyers have no idea, most members of the public would have even less of an idea - except for somersoft members who generally have a good understanding.
I would like a few basic/generic examples in visual / tree diagram form. Eg basic set up for mum and dad who when deceased will leave behind their properties in a trust to their kids. Who would / could / should play the roles ( those trustee name parts). Trusts for dummies.
Do the ages of the kids come into consideration. I believe children of a certain age who has passed the $450 or so income threshold are taxed at 50%. Is it at 16 that the adult thresholds apply? So even if assets go into trust for each kid, the younger kid is going to lose half of their income from that asset because of their age? Does it need to be set up as an educational trust or something where school fees are paid with the income so expenses outweigh the income or balance the income until child turns 18. Sorry if that doesn't make sense
Do the ages of the kids come into consideration. I believe children of a certain age who has passed the $450 or so income threshold are taxed at 50%. Is it at 16 that the adult thresholds apply? So even if assets go into trust for each kid, the younger kid is going to lose half of their income from that asset because of their age? Does it need to be set up as an educational trust or something where school fees are paid with the income so expenses outweigh the income or balance the income until child turns 18. Sorry if that doesn't make sense
How to tax effectively distribute $$ to beneficiaries if (even if the net is wide) you & the minister for war & finance are the only two living beneficiaries (or have only minor children - if whose behaviour continues won't see their 18th Birthdays)
If you are talking about trusts in wills then the income is taxed as if the children were adults.
Probably look at applicable cases via references in footnotes (unless super relevant, I wouldn't cover the detail of each case - we don't need another Butts).
Probably not to legilsation. Or even legislation. Many peoples' eyes will glaze over. Unless it's easily digestible.
Anything you do reference IMO should be short and easily understood. I think too much detail was something which made Renton's book heavy going.
Yes - thank you
I also like Tano's suggestion.
After we finish accumulating our lot for our retirement and end game we would like to think we can start something for the kids. How do you do this
If people like us are your target audience then my answer is definite no. You don't need to prove me that you are right. This is not a research paper
You could use a case as an example to further explain though.
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There are many ways you could assist kids:
1. simple trust where mum holds assets for kids such as a bank account
2. a more complex discretionary trust where control could be handed over when the kids are ready.
3. In your name, you control, and you leave to the kids in a testamentary trust upon your death.
4. In a superfund and you pay out on your death to the kids
The younger you are the less appealing the last 2 may be
And thanks for all the suggestions. I love references and footnotes so I have my draft book riddled with links to leglisation and cases. I might have to cut this back and maybe keep it in the footnotes so it is easy to disregard if you are not interested.
Time frame - last year! I will try to finish it off asap, perhaps over the next 2 months.
Terry and I are coauthoring the book. Plan is to offer the book for free at this stage. About 100 pages at present and covers both law and tax aspects of having rental properties, etc. Would love for people who are open to proof read and make suggestions before we release to the wider audience. If you do proofread and offer suggestions and comments then will be recognised in the opening credits. Aim is to make it user friendly with lits of examples, tips and strategies.
Chaos
You will be happy. Ive included a lot of diagrams with examples of different scenarios and how they work in lractice.
Ive included references to the tax act more as a support rather than explaining the legislation. We are trying to make it easy to read and understand for all.
Of course all suggestions are welcome.
You will be happy. Ive included a lot of diagrams with examples of different scenarios and how they work in lractice.
Ive included references to the tax act more as a support rather than explaining the legislation. We are trying to make it easy to read and understand for all.
Of course all suggestions are welcome.
I think a section on who would NOT benefit is a good idea.
Also when assets have been accumulated under individual names, the steps required to set up a Trust. Eg do the individuals have to in effect sell the assets to then accumulate under a Trust? At what point is this not beneficial
Steps required on the death of one of the Directors
Sounds great. Looking forward to reading it
Chris
Also when assets have been accumulated under individual names, the steps required to set up a Trust. Eg do the individuals have to in effect sell the assets to then accumulate under a Trust? At what point is this not beneficial
Steps required on the death of one of the Directors
Sounds great. Looking forward to reading it
Chris
