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:: Family TrustThe key issue with a Family Trust is asset protection. The Family Trust is an “Artificial Person” which can acquire assets on behalf of the Trustees and Beneficiaries.
This is a popular method of “ring fencing” or protecting assets from financial threat and loss.
However, it is essential to note that Tax Losses cannot be distributed to the Trustees or Beneficiaries and must remain within the Family Trust.
Please note - if the Family Trust has other income, the Tax Losses can be offset against that income to reduce the Taxable Profit of the Family Trust. |
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As described above, a Family Trust can acquire shares in your Investment Property when it becomes appropriate.
General Recommendation – Operate a separate bank account for your business, in the name of that business, no matter which Investment Property ownership entity you choose. This one action will save you time and money in accounting for your business. |
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