Based on professional advise on how to restructure going forward based on the LTC making a profit. I have being given quite conflicting advise which is starting to cause doubt on weather Trust is worthwhile other than I am paying too much tax!
Consider this as an example.
80/20 split 33/30 % tax rates respectively. Both anticipating quitting workforce in 5/2 years respectively.
no mortgage on either personal homes and very little in LTC. but have revolving facility for me to borrow and buy more IP's
Two children aged 16 and 10.
Based on the above I can form a discretionary trust, which means the Trustees have the discretion to allocate the income to the beneficiaries as they see fit.
or have a normal trust in which to hold all 3 properties.
or simply hold them under LTC's but allocate appropriate shareholding for tax etc.
Is there any downsides to this?
I was also told there will be a depreciation claw back $4k which was contradicted by another saying there is ways around this?
Are trusts too complex and expensive in the long term?
Is around $4k to setup reasonable ?
Thanks
Consider this as an example.
80/20 split 33/30 % tax rates respectively. Both anticipating quitting workforce in 5/2 years respectively.
no mortgage on either personal homes and very little in LTC. but have revolving facility for me to borrow and buy more IP's
Two children aged 16 and 10.
Based on the above I can form a discretionary trust, which means the Trustees have the discretion to allocate the income to the beneficiaries as they see fit.
or have a normal trust in which to hold all 3 properties.
or simply hold them under LTC's but allocate appropriate shareholding for tax etc.
Is there any downsides to this?
I was also told there will be a depreciation claw back $4k which was contradicted by another saying there is ways around this?
Are trusts too complex and expensive in the long term?
Is around $4k to setup reasonable ?
Thanks
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