Six Reasons To Consider Real Estate Acquisition Through a Property Trust
1Protect your property from creditors and lawsuits
By holding property in a trust, the property’s title is not held in your personal name. Instead, it’s held with the trust. This means that, were you successfully sued, your property would be out of reach from creditors and still safely in your control.
2Reduce rental income taxes
Property trusts let you distribute rental income to low-income beneficiaries such as spouses, children, children’s spouses, grandchildren, and their spouses. So you save thousands in taxes each year, increasing your net return on investment.
3Minimise capital gains tax when you sell
Save tens to hundreds of thousands of dollars in capital gains taxes by accessing the 50 percent capital gains tax discount that applies to assets held more than 12 months. Distribute reduced gains to beneficiaries on lower marginal tax rates.
4Increase wealth-creation potential
With reduced taxes on rental income and capital gains, property trusts can provide additional cash flow and capital for use in reducing property holding costs, repaying investment loans faster, or purchasing additional properties. This makes property trusts a powerful wealth-creation tool.
5Keep property in the family for generations
Transfer property to future generations without needing to change property ownership, pay stamp duty, or trigger unnecessary capital gains taxes. Accomplish this while still offering beneficiaries the same tax and asset protection benefits.
6Protect property from future lawsuits against your children
If structured correctly, a property trust can protect your property assets from future family or relationship breakdowns or lawsuits against your children. Tax Effective can help you keep property in your family lineage.
At Tax Effective, our trust specialists can help you:
- Understand your property ownership options.
- Determine whether a property trust is the right option for you.
- Protect your property from lawsuits.
- Minimise property taxes.
- Keep your property in your family lineage for generations to come.
- Set-up and administer your property trust.
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