In a previous post I mentioned selling our 1st IP to fund the purchase of two more this year and more later on. The original IP was bought in my name for tax purposes (neg gear) but things have changed and this time around we want to do it differently. I have read a lot on using trusts to structure our IPs and this makes a lot of sense. However, I have a lot of questions on how to set one up, how it works, etc (I will buy Dale's book as soon as I have the money available).
I understand we are better off having a company as trustee. Can our curent business do this for us (we have a Pty Ltd IT Consulting Co. that we both work for)? Assuming we get to the point the trust is making enough can we distribute income to all 4 members of the family (2 kids, 12 and 7 and us)?
How do we fund the purchases in the trust? Current situation is a LOC on our PPOR and an IO on the IP (abour 50% LVR in total).
As you can see we have a lot of questions and I expect Dale's book wil answer many of them. We are also off to see our accountant next week to talk about this and other related subjects.
I understand we are better off having a company as trustee. Can our curent business do this for us (we have a Pty Ltd IT Consulting Co. that we both work for)? Assuming we get to the point the trust is making enough can we distribute income to all 4 members of the family (2 kids, 12 and 7 and us)?
How do we fund the purchases in the trust? Current situation is a LOC on our PPOR and an IO on the IP (abour 50% LVR in total).
As you can see we have a lot of questions and I expect Dale's book wil answer many of them. We are also off to see our accountant next week to talk about this and other related subjects.
