Join our investing community

Hybrid trust

Discussion in 'Accounting, Tax & Legal' started by Reni, 6th Jan, 2009.

  1. Reni

    Reni New Member

    Joined:
    2nd Dec, 2008
    Posts:
    3
    Location:
    Vic
    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
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    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