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Holding assets in Trust!

Discussion in 'Investing Strategies' started by Triu, 17th Aug, 2007.

  1. Triu

    Triu Well-Known Member

    1st Sep, 2006
    Hi everyone do you think holding property and managed funds and shares in a HDT is a good idea. Or would you set up a HDT for property only and a Invesmtne Discretionary Trust for Shares and Managed Funds.

    any thoughts please.
  2. bundy1964

    bundy1964 Well-Known Member

    22nd Dec, 2006
    Adelaide, SA
    For asset protection seperate. If your -ive gearing a HDT may be the best option for both asset types. DT is great if your +ive geared as you can spread the income around.
  3. DaveA

    DaveA Well-Known Member

    19th Feb, 2007
    Sydney, NSW
    i agree with the 2 trust thing, simpler for franking credits 2...

    however for my share trust i was thinking of setting up a Chris batten HDT deed but not issuing any units, this way theoretically it will be a DT for the time being with a loan from me to the trust (I no about asset protection), this way if it is +ive geared I can distribute to anyone, it also means if HDT fall over any time soon I have shouldn’t have any major concerns (as it will be a DT, ill have to check the trust wording though), if HDTs become accepted (or if the trust has large tax losses) i always have the opportunity of issuing units as well and gain those advantages.. (i think the extra $800 in the deed/set for a HDT is probably worth it for this option later to have)

    its something i want to get nick to set up once busy season dies down, so ill imagine november/december

    so another idea for you to consider
  4. Nigel Ward

    Nigel Ward Team InvestEd

    10th Jun, 2005
    I agree with Dave on this. Why use a bog standard discretionary trust when you can get a hybrid discretionary trust and just not issue units if you don't want to gear but obtain the deduction personally?

    It gives you the flexibility with really no down side IMHO.

    The decision about structures is not always an easy one. If your investments will be income positive from day one and you don't intend to gear or don't need the personal deductions then a DT may suit your needs.

    See a solicitor for advice and cross check the tax implications with your accountant.