What is the Settlors role within a trust and what do I do with the Settlors $10 contribution?
The Settlor is a non-related party that ‘gifts’ the trust an asset (usually a $10 settled sum), and does not benefit from the assets of the trust in the future in any way. The $10 can either be deposited into the bank account of the trust, or a $10 note can be stapled to the inside cover of the bound trust deed AFTER it has returned from the State Revenue Office (if applicable). The settlor has no roles or responsibility, after they sign the trust deed – but without them the trust has not been created.
What does the set-up fee for trusts actually cover?
It includes the cost for setting up the trust and the trustee company, preparation of all the relevant paperwork involved with the two entities (where there is a trustee company), the ABN and TFN applications and registrations, stamping of the trust deeds (if applicable – not every state requires this), and all the postage and handling.
What is the Appointor’s role within the trust and who should the Appointor be?
The Appointor is the most powerful person within a trust structure. The Appointor’s role is to ‘appoint’ and ‘sack’ the trustee of the trust. It is important that you, yourself are involved with the trust as Appointer. It can be a joint position, so you can include a partner/husband/wife as Joint Appointor.
Should a trust own both my business and my investment assets?
Whilst technically, it can, it would not be recommended. This compromises the asset protection normally available. It is more beneficial to have one entity for your business and one for your investments. Everyone’s situation is different and advice should always be sought for your specific circumstances before setting up any structures.
What name should be on my trust bank account?
The full name should be ‘the trustee company as trustee for the trust’, for example: Apples and Oranges Pty Ltd ATF The Fruit Trust
How long will the process of setting up a trust and trustee company take with GGA?
We can have the trust and trustee company up and running generally within 24-48 hours once we receive your order form and payment. The trust and company paperwork, ABN and TFN registrations will take longer, however the trust is ‘alive’ once it has been ordered.
Is it difficult to gain finance using a trust structure?
It can be, particularly in a time where the banks are tightening their lending policies. However a good mortgage broker can take the hassle out of the process and make it as easy as possible for you. Speak to us for more information, we have an excellent mortgage broker who is very experienced with trusts.
Do I need to register my trust for GST if it is being used to hold properties?
Only if you are: buying commercial property; buying land for development ad resale; or buying properties for substantial renovation. If one of these applies to you, please speak to your accountant for more information.
Can I hold a property in a family trust and claim the loss against my salary?
No, unfortunately not. All losses made in a discretionary trust are quarantined within that trust and carried forward until they can be used to offset profits.