What are the benefits of buying an investment property under a trust?
Dec 5th 2011, 12:07 pm
#1
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What are the benefits of buying an investment property under a trust?
rather than under the name of wife and kids?
Are there benefits or is it just asset protection? A girlfriend's husband is buying a unit and won't put it in her name. She will be named, as will the kids, but the sol and acct will be trustees. She's a little nervous as she (and I) am not sure of the consequences.
Are there benefits or is it just asset protection? A girlfriend's husband is buying a unit and won't put it in her name. She will be named, as will the kids, but the sol and acct will be trustees. She's a little nervous as she (and I) am not sure of the consequences.
Last edited by al dente; Dec 5th 2011 at 12:10 pm. Reason: pressed enter too soon
Dec 5th 2011, 6:49 pm
#2
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Re: What are the benefits of buying an investment property under a trust?
Why doesnt she just ask her husband?
Dec 5th 2011, 9:15 pm
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Re: What are the benefits of buying an investment property under a trust?
or even the solicitor and accountant who will be listed as trustees?
ask them what the benefits and the drawbacks are. Speak to a conveyancer.
It is her buying the place, not them, so she needs to understand the implications of everything she is doing, otherwise we can potentially expect a thread further down the line entitled 'my friend just got shafted on her investment property. help'
ask them what the benefits and the drawbacks are. Speak to a conveyancer.
It is her buying the place, not them, so she needs to understand the implications of everything she is doing, otherwise we can potentially expect a thread further down the line entitled 'my friend just got shafted on her investment property. help'
Dec 6th 2011, 7:24 am
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Re: What are the benefits of buying an investment property under a trust?
rather than under the name of wife and kids?
Are there benefits or is it just asset protection? A girlfriend's husband is buying a unit and won't put it in her name. She will be named, as will the kids, but the sol and acct will be trustees. She's a little nervous as she (and I) am not sure of the consequences.
Are there benefits or is it just asset protection? A girlfriend's husband is buying a unit and won't put it in her name. She will be named, as will the kids, but the sol and acct will be trustees. She's a little nervous as she (and I) am not sure of the consequences.
Buying an investment property within a trust has two main advantages;
1) Asset protection
2) Allows you to distribute profits and losses to each party to essentially pay less tax
It is very common to buy an investment property in a trust and most solicitors and planners would suggest you buy your investment properties in a separate trust per property. However, having the solicitor and accountant as the trustee seems very very strange and is certainly not normal. Having this structure will also make it difficult to get finance (presuming they need a home loan to purchase that is).
