Forum Archive Index - November 2001

[bouncer <floben@paradise.net.nz>]

Some slightly off-topic thoughts about the use of trusts...

investor99 is certainly bold in making a public declaration of entering 
into a trust for the purpose of tax avoidance - That single statement would 
get any trust he settled ruled void! Let's be a little circumspect...

Nick, the lower tax rate for children no longer applies (recent 
legislation) if the assets were settled by a relative (daddy) or an 
associated person (hint: don't settle the assets - lend them, and settle 
them only when the income is large enough that it no longer matters).

Second hint: The Death Duties Act (as most people would think of it) has 
never been repealed - it's just set to zero. It would (will??!!) take the 
government about 3 minutes to put the rate back up to, oh, let's say 60% of 
everything over $400,000

Third hint: Don't ask how I know, but believe me when I tell you that the 
top 80 richest Australians have an average of 104 family trusts each(!)

Martin Hawes' marketing aside, trusts have a history stretching back to the 
Middle Ages (quite a fad!), and with a government that figures that, if it 
can't stop you from getting wealth, it can at least make sure you don't 
keep it, I wouldn't be without them.

All of this may be wrong.


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/