Setting up a trust to manage your property can have certain advantages depending on your circumstances. These can include:
- Tax benefits: Tax payable can be reduced by distributing income to family members with lower taxable income.
- Protecting your asset: As trusts allow you to control and receive income from assets without having them in your name, this structure may protect these assets in the event of divorce or litigation.
- Estate planning: Some trusts may allow you to pass assets on to future generations with less tax payable and can minimise legal issues.
Some common types of trusts include:
- Discretionary Trusts: The trustee determines which beneficiaries receive the trust funds and how much they receive.
- Unit Trust: The trustee divides the trust funds between unit holders, according to the number of units that they have.
- Self Managed Super Funds (SMSF): This is a trust that is established by people who want to take greater control of their own superannuation funds. A SMSF has become very popular here in Australia with many people selecting to add property to their investment portfolio.
*It is recommended you seek specialist legal, accounting and financial advice to see if a trust is suitable for you.
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General Advice Warning
The Information on this page has not taken into account your financial situation, needs or objectives. Before acting upon any advice, you should consider whether it is appropriate for you.