I have been wondering what would be the best legal structure for my investments.
I realise that everyones situation is different, but I was hoping some of the ASF members would be willing to share how they have legally structured their investments and why.
My wage has me close to the 40c tax bracket and with any luck, I will be in this bracket shortly. And as all doog investors should do, I am looking at how I can minimize the amount of tax I need to pay. Currently my investments are basically equities, but I would likly add direct property to that sometime in the future.
I have been thinking of using a discrentionary trust, which would allow me to split my investment income up between myself, the wife, the child already here and the other on the way.
When using a discrentionary trust, can the trust have a margin loan, or do I as an individual have it? ie who can claim the interest on the loan, to offset earnings.
I am also in accumulation phase for my investments, so effectively want to pour back my investment income, into more investments. If my total income takes my into the 40c tax bracket, am I better off having a company setup as a beneficiary to my trust. Then any income attributed to it, will only be taxed at 30c. Can the company then invest the money in the name of the trust?
Who is the best person(s) to discuss this with (lawyer, accountant, financial planner), or are there good resources on the web for this type of thing?
Also for anyone who has set up a structure similar to the one described above, can you tell me how much it cost to set up, and the on-going costs, ie tax returns for the trust and the company.