Investor 99
----- Original Message -----
Sent: Monday, November 19, 2001 8:51
PM
Subject: Re: [sharechat] Mary Holm &
Family Trusts
Regarding your comments about Family Trusts Hugh:
"Oh, I don't know re the Family Trust stuff - its all become very
trendy
but in fact I've found having my own company is far cheaper, easier
administratively, more flexible and there aren't any silly time limits in
the
event of death etc."
Having your own company AND a Family Trust is even better
because the Family Trust can hold a majority shareholding in the company,
which allows you to do income splitting via discretionary distributions to
various beneficiaries.
What's more, if you have the Trust Deed set up correctly, you can resettle
the assets of an existing trust into a new trust without any major
hassles. As with many things in life, the devil is in the detail so you
need to get it set up properly from day one, then everything you want to do
later can be accommodated.
"Still, Martin Hawes managed to make a good living out of
it while the fad
lasted......"
"Family Trusts are not a fad, they have been used widely for the last 100
years or more"
I THINK YOU'LL FIND THAT THYE HAVE BEEN AROUND FOR A LOT LONGER THAN
THAT. TRY 300 YEARS. I CAN GIVE YOU A NICE HISTORY LESSON ON THEM
IF YOU WANT!
"Some people believe anything they're told by "experts"
instead of investigating for themselves."
Yes, and some other people go and talk to several "experts" then do their
own research and pick the most suitable option. Having a Family Trust
allows me to pay for my children's education out of money which has been taxed
only at their marginal rate of tax (19.5% instead of 39%). And it allows
my wife and I to split our income as $60k each, then deduct $30k odd
distributed to the children before we start paying 39% tax. Even
then, there are ways to avoid the 39% tax rate completely by distributing
tax-paid income out of the trust as a capital distribution.
There you have it Hugh. If you still say in light of the above points
that Family Trusts are a valueless fad, well you are entitled to keep your
opinion. Go on paying 39% tax on some of your income. Meanwhile,
I'm happy to keep saving $000's per year by using a Family Trust.
--
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