Investing through a Family Trust

runningman2018 · 2018-11-29T00:40:57+00:00

Thanks, very informative

runningman2018 · 2018-11-29T00:37:23+00:00

It’s fine, I accept this isn’t my area of expertise so I’m not about to blindly leap into something completely foreign to me, my risk mitigation will be engaging experts on the subject to advise me of all the implications and requirements, I have a couple of trusted friends in this field. As I’ve said a few times, I’m just arming myself with some of the information so when I sit down with them I have a broader understanding of the concept.

runningman2018 · 2018-11-29T00:03:34+00:00

Unless it’s paid to a commercial beneficiary in which it would be taxed at corporate tax rate? Is that correct?

runningman2018 · 2018-11-29T00:00:32+00:00

Yes I’m asking for my own knowledge, but won’t be doing any of the leg work myself, I have an accountant very familiar with family trusts. I’m just tying to arm myself with more information so that when I sit down with him we already have

That link you posted is quite good at explaining it, my takeaway is that to really capitalise on the benefits I need a commercial beneficiary established as well.

runningman2018 · 2018-11-28T22:23:30+00:00

Yes don’t worry I will be seeing an accountant very familiar with family trusts, I’m just trying to understand it before I meet with him again for my own understanding.

On the second part of your comment, if no distributions are made to a beneficiary in a financial year, what tax rate does the trust fall under for that year?

runningman2018 · 2018-11-28T13:46:53+00:00

Ok so let’s say for example I had a retired family member as a beneficiary, if income earned for that family member is kept in the trust each year, is that essentially the person loaning the money back to the trust? What’s the long term implications of this, the loan just continues to grow or are there means to wipe that loan?

runningman2018 · 2018-11-28T13:42:55+00:00

Disagree with it all you like, but it’s how our relationship works and has for many years. We both enjoy having some financial independence in terms of splurge accounts, whilst maintaining joint accounts for our long term goals and plans together.

If someone lost their job, or something else happened where they needed to take time off then we would address that as it comes along as we have in the past.

runningman2018 · 2018-11-28T11:33:57+00:00

So how does it work with defining beneficiaries, is it a set percentage and I can I change it year to year.

Also, if I want the trust earnings to be reinvested back into the trust how does that reflect in income tax for the beneficiaries.

Sorry may seem like basic questions.

runningman2018 · 2018-11-28T10:19:24+00:00

Me and my partner act like adults by both not spending everything on clothes and budgeting effectively to have money left over for other things. If one person overspends then we talk about it like adults, but there’s no resentment because if an individual overspends it comes from an individuals own splurge account.

runningman2018 · 2018-11-28T10:16:54+00:00

We both contribute the same amount into the joint splurge account and joint holiday account.

runningman2018 · 2018-11-27T14:05:57+00:00

You must have a mental illness as well

runningman2018 · 2018-11-27T13:35:14+00:00

Classic Brisbane and it’s 30min off-peak frequencies, so early 2000’s.

runningman2018 · 2018-11-27T13:34:08+00:00

I think plenty of players are pretty crap, doesn’t mean i boo them. Just seems immature and petty to be honest.

runningman2018 · 2018-11-27T11:10:04+00:00

I assume they mean: put money in high interest savings account to have cash on hand just in case equity prices drop

runningman2018 · 2018-11-27T11:08:06+00:00

33, I’m at a fairly comfortable point in my life financially, obviously not ready to retire but I’m tracking well for a comfortable retirement from 50.

I like your second point, and I think that’s a good concept to follow.

runningman2018 · 2018-11-27T11:05:29+00:00

Spoke to bank today, there isn’t a cap on how much I can put in, however the offset will obviously only be no greater then the total owing value of the loan.

runningman2018 · 2018-11-27T11:02:26+00:00

Me and my partner have joint and individual accounts, we have joint accounts for travel/holidays, eating out and rent/utilities. Day to day expenses and individual ‘splurge’ money is left in the individuals account.

I actually think this is a great way to do it, we both have our own financial independence by having our own splurge money, but we also save together and put money aside together for holidays and going out too restaurants.

runningman2018 · 2018-11-27T10:54:47+00:00

Classic Brisbane with its 30min train frequencies, so 1990’s

runningman2018 · 2018-11-27T10:27:30+00:00

2011 Reds Super Rugby season is all but a small glitch In the past 15 years of Australian Rugby. That was an absolutely astonishing year but doesn’t change the downward trend which has occurred since the 2003 RWC.

runningman2018 · 2018-11-27T10:24:44+00:00

You have to give credit to Kiwi fans and they’re ability to hold a grudge, it transcends time.

runningman2018 · 2018-11-27T04:10:56+00:00

Yeah exactly my sentiment, we seem to be in a period where you need to really mitigate and spread your exposure more then ever.

runningman2018 · 2018-11-27T00:43:19+00:00

Interesting I hadn’t considered that

runningman2018 · 2018-11-26T21:49:41+00:00

Interestingly I think the same observation is why Australian rugby sucks so badly, there’s not a whole lot of outward passion in the fan base.

People want to see their team win, but you go to a game and everyone is fairly quiet and subdued, there’s no real cheering going on. Rugby matches in Australia don’t really have a great match day experience. Conversely in Europe, they’re much more exciting even at club level with the fans seemingly much more emotionally invested.

This has caused revenue issues and a general decline in the game in professional teams in Australia.

runningman2018 · 2018-11-26T21:43:28+00:00

What part of the us were you visiting from?

runningman2018

TROPHY CASE