Unit Trusts

[monoply]

Hi,

Are there any benifits a unit trust has, that other trusts cannot provide?
I see most here promote Hybrid Disrectionary Trusts.

On Chris Battens site, I read that a unit trust can transfer property into a super fund, with out capital gains etc.

Can a Hybrid trust do this?

Are there any other advantages to unit trusts?
Do unit trusts provide my asset protection than other trusts?

Cheers
mono

 

[GreatPig]

Monopoly,

On Chris Battens site, I read that a unit trust can transfer property into a super fund, with out capital gains etc.

Can a Hybrid trust do this?

One of Chris's documents states that a super fund can only invest in a unit trust, and subject to certain restrictions. Not sure why, but I'd guess because of the discretionary nature of an HDT.

All his documents I've seen talk of buying property in a unit trust with the units owned by an HDT. Then in the future, if desired, units could be transferred to an SMSF (unit trust units that is, not HDT units). This is the arrangement he set up for a work colleague some years ago, although at that time with an ordinary discretionary trust rather than HDT.

GP

 

[quiggles]

Part of this is due to the fact that an SMSF can't borrow itself or invest in a fund which borrows. As a result, property and smsf's don't really mix as the chief advantage of property is leverage.

*random thought - I wonder how options are treated...