the book is now available for review/comments/criticism. if you are willing to provide proof reading/comments and feedback then email us at
[email protected]
I am very interested in the book!! Happy to provide comments and feedback!
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
the book is now available for review/comments/criticism. if you are willing to provide proof reading/comments and feedback then email us at
[email protected]
2. Unit trusts dont borrow. The unitholder borrows to buy units and claims the interest against + trust income
Hi Paul, a few quick questions on the above:
If the unitholders are two disc trusts with corporate trustees, can the directors of each corp trustee (who are also sole beneficiaries of each DT) claim the interest against their distributions (from the unit trust to their DTs then to them as beneficiaries)?
Or will the loss have to be retained into each of the DTs?
Many thanks
Trustee borrows trustee claims.
Ok the Trustee Co Pty Ltd would have the loan in its name and claim any deductions related to the borrowing expenses of buying the units.
So considering this loan is used to buy units in a UT (and not a property) - how does one set up the loan structure so that at settlement the UT ends up with the property title and the Trustee Co (ATF DT holding units) with a loan for the units.
Is it just a matter of placing the loan in the Trustee Co name (ATF DT) and title in UT or is this a different type of loan?
If any of the finance gurus / brokers are willing to shed some light it will be much appreciated by many readers of these boards.
Cheers
1) starting funds for a unit trust... what basis / criteria would you use to determine whether to lend the trust money vs simply purchasing units
2) once the project done within a unit trust is complete, the property is revalued higher and equity is released, can these released funds be simply on-loaned to trust2 to start new a project? Or what would other options be in terms of buying back units, redeeming units or otherwise to repeat Point 1) again with new project/property in new trust.
yes can be lent by the trustee if the trust deed allows.
What if both trusts share a trustee?
not sure why you would want a the discretionary trust to take the loan but...
there would be no trust
Thought lots of people did that, one pty ltd, serving as trustee for multiple trusts...?
Thanks Terry. Thought it makes sense since the trustee co atf DT holds the Units. Would you suggest that the loan be held by individuals instead (i.e. Directors of DT trustee co)? Or are you alluding to changing the structure (dt owning units in ut).
a company can be a trustee of multiple trusts, but a person cannot hold assets on trust for themselves or there would be no trust.
Yep, wasnt talking about personal trustees at all.
Now that thats cleared up, if a company is trustee of 2 trust deeds that both allow lending out & borrowing in, can trust1 lend money to trust2?