• Private Trusts & Private Foundations

  Investment property into trust, land trust documents

  Posted by Laura on October 26, 2022 at 5:16 pm

  We are doing our trust with Mark. We got our trust documents 5 days after the trust zoom so a few of these questions I wasn’t able to ask or elaborate on. Admin said would have to buy another zoom Meeting to ask questions about the trust and documents so I thought it was worth a try asking here so we can fill out our documents and feel confident I have a good understanding first. Hence why they are big questions and tricky.

  I am still a bit confused with our investment unit we own, with a mortgage:

  • It has been lodged with the ATO before.
  • My partner will add it to his return next year if he doesn’t use SE’s tax return method. (Will do SE’s tax method if mine is okay)
  • I added it to my final tax return this year because I lodged last year.
  • Brought as an investment 2.5 years ago
  • Q- If we manage the rental ourselves, get his bond back from the RTA, he pays cash or we can invoice him as a productivity of labor and he can pay directly to my trust account. (He is a good friend anyway).
  • I could even pretend I live there and it will look like we don’t have a tenant if he pays cash.
    Could we then put the unit into trust, depending on the banks cooperation, and transfer it into the trust name?
    That would remove tax obligations?

  Or, because it has been lodged before this could still be risky.

  Q -If my partner wants to continue filling out his tax returns the “fraudulent” way this could contradict this process of getting the unit into a trust?
  Even without visible rental income, my TFN is frozen now so if my partner lodges a return with his share of 50% of the unit even if it is negatively geared, it may flag me and show 50% of the unit ownership is missing.

  If he doesn’t do SE’s return, Could he just claim the entire amount of the unit 100% share so it doesn’t affect me? then there is no percent to account for.

  Q – If the investment property can be put into trust and we sell, would we still pay something like capital gains?

  Q – Can we have more than one account on the trust. I thought it might be beneficial to receive my pay in one account and have the unit in a separate account if they can both be set up under the trust.

  Q – Forms, have I got this right?

  • There needs to be two trustees really, to be safe
  • There can be two principals but that’s optional, there can just be one.
  • There should really be two primary beneficiaries.
  • Secondary can be a family member, pet, child
  • Tertiary can be family member “
  • Default should at least be the two Trustees.
  • I can change the beneficiary if needed as a trustee. The principals can change beneficiaries and trustees
  • I can be a trustee, beneficiary, and the principal

  Laura replied 2 years, 7 months ago 1 Member · 0 Replies
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