Let me tell you about "Property Trusts" and
"Family Trusts".
I know many people would
like to know about these
important "trust" facts.
Just remember that a trust does not pass on any negative
amounts to any unit or person. The negative can only be to the trust itself.
This means if the Trust trades in Negative, it will be held as a negative
only by the Trust until it has made a profit. Then it will be worked out by
the accountant.
Generally, my understanding is that you will use a "trust"
only for positive Cash flow investments.
What is a "Property trust"?
Basically it's a unit trust.
Westfield and property companies use it - the trust sells units that can be
purchased by a person or company.
This means they will only receive a return to the number of
units they have purchased in the property trust. E.g.- 100 units in the
trust and you have purchased 10 units, then you will receive 10% income from
the trust.
What is a "Family Trust?"
This is different.
It's a discretionary trust which means the profit can be altered and changed
at any given time to a family member according to the discretionary.
So basically what many families do is give the income from
the trust to the lowest income people in the trust to keep the tax as low as
possible. The benefit is that it can be altered every year according to the
discretionary.
This something an accountant should cover with you in more
detail. If you would like to know more about this please contact a very
knowledgeable man.
Accountant and dear friend of mine:
Mr. Geoff Rogers at Camden Valley Financial Solutions
email- geoffr@camdenvalleyfs.com.au
Phone - (02) 4647-4088 |
