Advice on structures

Discussion in 'Share Investing Strategies, Theories & Education' started by jared, 19th Jul, 2017.

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  1. jared

    jared New Member

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    When to know if you should use a trustee/ trust to start investing.
    I'm at a stage where I believe I should head down this road.

    I have a couple assets in my own name but really think if I were to keep investing more I would be better off with the above.

    Any feedback or questions?
    What tax bracket would benifits be seen?
     
  2. Hosko

    Hosko Well-Known Member

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    Hopefully the experts will be along soon to answer this. And the answer may depend on some things like - Are you long term investing or other (This thread is posted in the Trading section), is it for asset protection, is it tax minimisation, is it for structuring to best pass assets to the next generation?
    A lot of the things will be linked just get it clear why you are wanting to do something and take guidance from the professionals of which I am not one
     
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  3. Hodor

    Hodor Well-Known Member

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    As there is only one reply I'll add some thoughts.

    Hosko made some good comments, think about what you want to achieve.

    Sounds like tax optimisation is one of your considerations. Do you have others in lower tax brackets you can distribute income to? Could you use a company (30% tax) and trust structure.
    Do the benefits outweigh the costs?

    You really need to seek professional advice to work out in the benefits out weigh the costs. Assets in your own name may incur capital gains events etc when transferring into the trust/company so it is best to get the structure right from the start
     
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  4. jared

    jared New Member

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    Looking at long term investing. Im looking at structures to invest within as I think it will benefit me tax wise down the track and if I decide to buy more property will have great asset protection.

    I've been thinking about this for some time now. I'm only in the 32.5 tax bracket but have a couple family members that I could who are not in a tax bracket. ( just have to watch there amount so they don't loose benifits)
     
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  5. Rakhi Withanage

    Rakhi Withanage Member

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    Hi Jared,

    That depends on a range of factors such as your income, your marital status and if you kids etc.

    A trust could potentially be a potent tax minimization structure if it’s structured properly. A family (discretionary) can be set up to distribute income generated from the trust to beneficiaries in lower tax brackets. Eg. Spouse, kids etc.

    Trusts also offer asset protection as it is in a separate legal structure and can assist in succession of assets and transfer of wealth.
     
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There is no right answer as to which structure to use - other than 'it depends' and it will depend on about 15 factors such as land tax, income tax, CGT, stamp duty, asset protection on death,incapcacity, bankruptcy and divorce, social security etc etc.

    you need specific legal advice on this. Have a read of some of my structuring posts on propertychat.
    Terryw's legal Tips Index
     
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  7. jared

    jared New Member

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    Thanks Terry,
    Also I've just learnt that the government are trying to change tax on beneficiaries. Will be keeping an eye on this.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes, there could be some changes with discretionary trusts in the future.