Derek, you can simply take the money out without any tax. Sometimes it is better to loan the money, but ordinarily it would be gifted in and if it is needed back then the trustee simply resolves to distribute capital. If income or capital gains are made then the beneficiary of the trust who receives those must pay tax on them. But not on a return of capital. Cheers, Sam
Thanks Sam. Not sure why anyone would give their money away, Is that why I hear people talking about ‘asset protection’ in trusts, by gifting the money instead of a loan.
Enjoyed the video and great explanation. What are your thoughts on what structure is most appropriate for secondary education funding (not university). Obviously the $416 tax free income limit for minors presents a more difficult decision.
Hi Clay. Education bonds are great for that purpose, but it takes some planning ahead to get the 10 year investment period in before secondary school begins. Cheers, Sam
Wonderfully well articulated.. great work!
Thank you, they are a bit complicated and take some explaining.
Woow! If this is the video I can only imagine how great the course is !
Thanks Bridgette. We are working hard to make the course even better.
Another great video Sam. You’ve a niche style of explaining things in Finance. Thanks.
Thanks Ratnakarg. I am trying to be the person who fully explains these topics. Sam
Great video Sam. Makes it easy to compare and make a decision.
Thanks Kian, the providers of insurance bonds and education bonds should make them a lot easier to understand.
Great video! I've wondered about the validity of investment bonds. Thank you!
You are welcome. It is a complicated subject. It took a bit of explaining.
"Great video and an equally great course, thanks Sam!
Awesome, and thanks for the big wrap for my Finance Education for Investors course.
Great video. If you ‘gift’ money to the trust, how do you get it out? Would it be better to make a ‘loan’?
Derek, you can simply take the money out without any tax. Sometimes it is better to loan the money, but ordinarily it would be gifted in and if it is needed back then the trustee simply resolves to distribute capital. If income or capital gains are made then the beneficiary of the trust who receives those must pay tax on them. But not on a return of capital. Cheers, Sam
Thanks Sam. Not sure why anyone would give their money away, Is that why I hear people talking about ‘asset protection’ in trusts, by gifting the money instead of a loan.
it would be great to see an example that includes CGT, in a trust vs investment bond scenario over a 10 to 20 year scenario
Hi Sam, what would you need to believe to invest $100k in setting up a trust vs investing in paying down your mortgage?
Enjoyed the video and great explanation.
What are your thoughts on what structure is most appropriate for secondary education funding (not university).
Obviously the $416 tax free income limit for minors presents a more difficult decision.
Hi Clay. Education bonds are great for that purpose, but it takes some planning ahead to get the 10 year investment period in before secondary school begins. Cheers, Sam