Government have made many changes over the years on people having a Trust, so you must make sure your set up will be well worth the cost.

Just remember that a trust does not pass on any negative amounts to any unit or person. The negative can only be to the trust itself. This means if the Trust trades in Negative, it will be held as a negative only by the Trust until it has made a profit. Then it will be worked out by the accountant.

Generally my understanding is that you will use a "trust" only for positive Cashflow investments.

But I have a good friend of mine Ms Eng Sivieng who can set up your trust in a way that you still can claim the Interest portion of the loan and claim it against your taxable income.

Because this is a fine line between is it right for you or not, you really need to either chat or sit down with a Trusts Specialists like Eng to see if you will benefit from this type of structure.

The benefits in setting up a trust is, your protecting your assets and no matter what happens to your work, company no one can really take your assets away as they are owned by the trusts and not by you personally


What is a "Property trust"?
It's basically a unit trust, which means people or a company can purchase units in the trust.
Westfield and property companies use it because its much easier to distribute the profits.

Eg- 100 units in the trust and you have purchased 10 units, then you will receive 10% income from the trust. This means they will only receive a return to the number of
units they have purchased in the property trust.

Now a "Family Trust" is different.
It's a discretionary trust which means the profit can be altered and changed at any given time to a family member according to the discretionary.

So basically what many families do is give the income from the trust to the lowest income person in the trust to keep the tax as low as possible. The benefit is that it can
be altered every year according to the discretionary.

This is something an accountant should cover with you in more detail.

If you would like to know more about this please contact a very knowledgeable , Accountant and dear friend of mine:


Next email I'll be covering "'".