Trust essential

In most cases it's not worth putting family home in a trust in AU as you give up your capital gain tax discount.

 

Have a registeed mortgage over your own property, so you stand 2nd in line behind the bank

 

To move from PPR 1 to PPR2 , and use PPR1 as investment property

 

PPR1 worth 600k, mortgage $100k, sell PPR1 to TrustNG for $600, Trust NG (Me the director of corp trustee) borrows $600k and use the property as investment, the interest is fully deductible, but we need to have income distributed from a different trust to take the tax benefit

 

I get paid $600k by Trust NG less $100k mortgage, I have net $500k to buy PPR2

• The settlor must NOT be a beneficiary, or it will render the trust invalid.
• Settlement fund ($20 or so) must be a donation and it cannot be invoiced for, or it will render the trust invalid.
• Trust CF+ or Trust business distributes profit to Trust NG, but the trust deeds need to allow income to be distributed between trusts.
• A good deed should also allow change of trustees
• Divorce courts will see through structures if the assets are accumulated during course of marriage
• no  more than 4 trusts under 1 company
• Don't put different risk class assets in same structure (not trust!), as liability can flow from Trust 1 to Trustee then to Trust 2
• Piggy bank trust owns the shares of all the non-trading trustee companys. I am the trustee of the piggy bank trust.
• I should be the appointer who can change trustees.