At 1:10 you mentioned that a Settlor cannot be the Beneficiary.. However for Malaysian, as stipulated in Trust Act 1949, a settlor can indeed be the beneficiary too. Hence I bought some Cash Trust for myself.
Hi Davie, on a different topic is the a video you have on vehicle purchase under family trust as work vehicles. We are trying to get started with a franchise business under our family Trust. It requires us to have a full time work van and we want to buy it under the Trust name. What are the considerations? Do we have to register the vehicle under the trustee name (in this case it's a company)
Hey Davie, if I conducted my business as a partnership, and held my personal assets in a trust, wouldn't this provide a similar protection as running a limited liability company?
Yes similar but not exactly the same. I wouldn’t advise on this because holding your home in a trust would mean you would lose out on the main residence exemptions for CGT and taxes.
It’s on their marginal tax rate. So depends on how high their taxable income is. Google income tax rates for individuals and it will explain how the tax works
i have a question. say i was to win the lottery for example, how can i use a trust to protect against tax and be able to organise a monthly wage to be paid to to each beneficiary with a bank account that allows me to earn interest? if i was to pay a wage and the interest earnt was a lot more than what was paid to each beneficiary, can the money left over be reinvested back into the earning account to enable more interest to be earnt?
Hello, firstly in Australia gambling wins are not taxable so you can just gift money to individuals tax free if it’s from the lottery. Trust don’t pay wages so you are probably mean distribution. You can distribute the profits/income of the trust but only if the trust made money. There is no interest charged on distributions. You can lend money to individuals and there may be interest on the loan however we can’t advise on this as it could be financial advice. Best you book a meeting with an accountant as the questions you have asked need a full analysis of your current situation.
I gather a lot of the idea of a trust is to keep people's stucky fingers off it because the assets are no longer in your name. If the trust has you as the only trustee and beneficiary, it can be wound up and taken from you in a legal challenge such as a divorce. This is why it's better to have more than 1 trustee and beneficiary
In what, some, any or which respect do trusts, overall, compare or differ with, perhaps geographically distant, yet historically and politically similar jurisdictions (just comparing among the English speaking)?
say for example if a parent of 4 children wants to pass on the family property to split 4 ways rental income (not selling the house) after when they pass away, is it better to transfer the title to include 4 names of the children or put it in a trust?
Hard to say without proper tax advice and understanding the full situation. To answer this question it involves assets, risk level tolerance, income level of children, age, spouses, relationships, businesses and etc.
Really depends actually, if you are a high income earner by have no family in Australia then you wouldn’t benefit other than asset protection. But if you have many family members with low income you could benefit greatly from family trust.
@@DavieMach I just saw a mail that came through the other day and it was about my dad’s family trust and I wanted to know more that is why I decided to look it up on TH-cam. So per say a family like mine, mum, dad, and two other siblings one is internship, I’m still a student with a part time job and a little sister in high school, it will be more worth it than us being grown ups with a substantial income?
Hi Davie. I really like your channel and it’s very informative. I had a family trust with corporate trustees. I plan to use family trust to buy shares. Is any pros and cons to do that? Thanks
Thank you. Sorry Cindy it’s too hard to say unless you get proper advice to review your situation. Accountants need to look into your income, assets, loans, investment intentions and family. Thank you :)
Very brief yet informative. Thank you
Glad it was helpful, Zandi!
At 1:10 you mentioned that a Settlor cannot be the Beneficiary.. However for Malaysian, as stipulated in Trust Act 1949, a settlor can indeed be the beneficiary too. Hence I bought some Cash Trust for myself.
Very helpful dave! Keep it up ❤
Great video, thanks for that :)
No problemo
@5:08 Land tax free threshold: I know in WA and QLD it does apply. What about VICTORIA?
Hi Davie, on a different topic is the a video you have on vehicle purchase under family trust as work vehicles. We are trying to get started with a franchise business under our family Trust. It requires us to have a full time work van and we want to buy it under the Trust name. What are the considerations?
Do we have to register the vehicle under the trustee name (in this case it's a company)
Any video to do registration of a trust ?
Trust is complicated and you will require a lawyer or accountant to create this
Are family trust included in asset tests for government pensions on retirement?
Hey Davie, if I conducted my business as a partnership, and held my personal assets in a trust, wouldn't this provide a similar protection as running a limited liability company?
Yes similar but not exactly the same. I wouldn’t advise on this because holding your home in a trust would mean you would lose out on the main residence exemptions for CGT and taxes.
Hi thanks for explaining. How is the tax handled on distribution to the beneficiaries?
It’s on their marginal tax rate. So depends on how high their taxable income is. Google income tax rates for individuals and it will explain how the tax works
Informative
The beneficiaries are not paying the tax bill for me . What do I do about this ?
i have a question.
say i was to win the lottery for example, how can i use a trust to protect against tax and be able to organise a monthly wage to be paid to to each beneficiary with a bank account that allows me to earn interest?
if i was to pay a wage and the interest earnt was a lot more than what was paid to each beneficiary, can the money left over be reinvested back into the earning account to enable more interest to be earnt?
Hello, firstly in Australia gambling wins are not taxable so you can just gift money to individuals tax free if it’s from the lottery.
Trust don’t pay wages so you are probably mean distribution. You can distribute the profits/income of the trust but only if the trust made money.
There is no interest charged on distributions.
You can lend money to individuals and there may be interest on the loan however we can’t advise on this as it could be financial advice.
Best you book a meeting with an accountant as the questions you have asked need a full analysis of your current situation.
@@DavieMach so if I invested into an index fund and used the interest to pay beneficiaries and not touch the principle.. is that an option?
@@garystinten9339 Yes it can be an option for your trust
Can a trust be contested by outside family members once the trustee passes away?
I gather a lot of the idea of a trust is to keep people's stucky fingers off it because the assets are no longer in your name. If the trust has you as the only trustee and beneficiary, it can be wound up and taken from you in a legal challenge such as a divorce. This is why it's better to have more than 1 trustee and beneficiary
In what, some, any or which respect do trusts, overall, compare or differ with, perhaps geographically distant, yet historically and politically similar jurisdictions (just comparing among the English speaking)?
Sorry, I'm only qualified to share my expertise in the Australian system.
say for example if a parent of 4 children wants to pass on the family property to split 4 ways rental income (not selling the house) after when they pass away, is it better to transfer the title to include 4 names of the children or put it in a trust?
Hard to say without proper tax advice and understanding the full situation. To answer this question it involves assets, risk level tolerance, income level of children, age, spouses, relationships, businesses and etc.
Thanks for the clip Davie. Quick question, does transferring a property you own into a trust incur CGT?
Yes it does, best to speak to an accountant.
Also be careful with land tax and family trust as well.
Does a family trust generally only relates to those who earn higher than the average income?
Really depends actually, if you are a high income earner by have no family in Australia then you wouldn’t benefit other than asset protection.
But if you have many family members with low income you could benefit greatly from family trust.
@@DavieMach I just saw a mail that came through the other day and it was about my dad’s family trust and I wanted to know more that is why I decided to look it up on TH-cam. So per say a family like mine, mum, dad, and two other siblings one is internship, I’m still a student with a part time job and a little sister in high school, it will be more worth it than us being grown ups with a substantial income?
@@Ace-cc2wl sorry ace but it does sound right. I can’t really be certain as I don’t know the full picture.
Hi Davie. I really like your channel and it’s very informative. I had a family trust with corporate trustees. I plan to use family trust to buy shares. Is any pros and cons to do that? Thanks
Thank you. Sorry Cindy it’s too hard to say unless you get proper advice to review your situation. Accountants need to look into your income, assets, loans, investment intentions and family.
Thank you :)