Loans from Trusts to Companies

Discussion in 'Share Investing Strategies, Theories & Education' started by Will5308, 5th Aug, 2017.

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  1. Will5308

    Will5308 Member

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    Northern Territory
    I have a question I hope someone can assist with.
    My family and I are starting up an investment company and will need to inject some start up capital. I intend to lend some funds from a Trust to the Company.
    I don't think I need a 7A Loan Agreement, but would he happy to take advice if it is otherwise. Is there a particular form of Loan Agreement I'd need to use, in your experience?
    Thanks.
     
    Will5308, 5th Aug, 2017
    #1
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  2. Terry_w

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

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    This wouldn't be Div7A as going from the trust to a company.

    The trustee should have a written loan agreement in place that is enforceable. See a lawyer to draw one up. I do these all the time for clients, but am not taking on any more clients atm.
     
    Terry_w, 6th Aug, 2017
    #2
  3. Will5308

    Will5308 Member

    Joined:
    3rd Aug, 2017
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    Location:
    Northern Territory
    Thanks Terryw.
    I'll chase up an appropriate loan agreement.
     
    Will5308, 7th Aug, 2017
    #3
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