We have a hybrid trust for investmen purposes. The trust has 3 properties and issued unit to my husband - 100%. We are thinking of buying shares in the same trust. 1. Is this a good idea or we should avoid it? 2. Can the trust own the shares in its discretionary capacity - no units to be issued. 3. Can the trust ( if own the shares) distribute 100% shares profit (if any) to the beneficeries? The aim is: 1. to keep property and shares separate 2. to use the discretionary flexibility in profit distribution assuming the shares will make profit (??? optimist) 3. Not to effect the negative gearing as it is at the moment. Thanks, Reni
Keep them separate. If you're not going to gear the shares then why not use a simple discretionary trust to hold them? Cheers N
