Should you be Investing in a Family Trust in Australia? | Benefits of a Family Trust in Australia
Vložit
- čas přidán 1. 07. 2024
- As an accountant, I quite often get asked whether someone should hold their investments in a Family Trust in Australia. In this video I discuss the benefits and downsides of a Family Trust in Australia. I look at the tax benefits of a Family Trust as well as the costs that it will incur. I talk about who a Family Trust is for and in what situations I would recommend one.
---
Do you use a Family Trust for your investments?
---
📺 Subscribe to this channel - czcams.com/users/ethanroosho...
---
🔥 Join Our Discord! The Rooshocks Discord allows me to answer questions about Business, Tax, Crypto and NFTs. It’s also the place where you can get up to date information on my NFT project, Rooshocks! - / discord
---
💰 My Accounting Business - rooshockaccounting.com.au/
-
🖼️ My NFT Project, Rooshocks - rooshocks.xyz/
-
💼 How I Track My Crypto Investments for Tax Time
Crypto Tax Calculator - cryptotaxcalculator.io?fpr=xo5ak (Get 20% Off using the code BFF2020)
Koinly - koinly.io/?via=9B29D87A
CoinTracking - cointracking.info?ref=E484421
---
✏️ How I Track My Investments for Tax Time - portfolio.sharesight.com/refe...
---
📈Digital Surge (Australian Based Crypto Exchange) -
digitalsurge.com.au/?ref=6SK2Q
---
💸Pearler (Australian Based) ($9.50 brokerage and Free Brokerage on Some ETFs) - pearler.com/home?deal=rooshock
---
✍ Personal Finance Blog - ethanrooshock.com/
---
📖 Chapters
0:00 Intro
0:47 What is a Family Trust?
1:28 Who can be a Beneficiary of a Trust?
4:00 Distributing to Children
5:13 Distributing to Parents & Other Family
6:25 Other Benefits of a Trust
7:22 Cons of a Trust
8:31 Start Up Costs & Ongoing Costs of a Trust
10:57 Examples
14:26 Summary
---
Ethan 'Rooshock' (Rucioch) is an Australian business owner in his mid 20's. He is the owner and director of Rooshock Accounting, an accounting firm. He is also the creator of an NFT project, Rooshocks. In his spare time, he enjoys travelling as well as watching countless hours of sport. On this channel you will find a range of different content, including personal finance, business advice, tax tips, crypto tax tips, NFT discussions and even some social media marketing content.
---
CONNECT WITH ME HERE:
👍 Facebook - / ethan-rooshock
📷 Instagram - / ethanrooshock
🐦 Twitter - / ethanrooshock
🎵 Tik Tok - / ethanrooshock
💼 LinkedIn - / ethan-rucioch-037b44a3
✉ Email - ethan@rooshockaccounting.com.au
---
Music - www.bensound.com
---
Disclaimer
The information in this video and on this CZcams channel is for entertainment and general information purposes only. It should not be taken as constituting professional advice. You should not rely on it as financial advice. There are always risks in any financial decision and all decisions should be made on an individual basis. You should conduct your own research and seek independent professional advice where needed. Some of the links in this video or video description may be affiliate links. Ethan Rucioch, Rooshock Enterprises Pty Ltd, Rooshocks Pty Ltd or any other related party may receive a commission through these.
---
#familytrustinaustralia #familytrust #investinginatrust
Do you use a Trust when investing? If not, did you ever consider it?
Yes, I have used it. Exploring its usage now to increase my borrowing capacity :)
Awesome!@@siblingworldtv1946
Very well explained mate. It's not easy to comprehend that... Thank you and I've subscribed to your channel and looking forward to learning lot more of your videos...
Thanks! Glad you found it valuable!
Informative video! Keep up the good work!
Thanks! Appreciate the support!
This is really informative and very well explained 👏
Thank you, glad you found it helpful!
very well and clearly explained, thank you
Thanks! Glad you found some value in it!
Thanks Ethan. You explained a lot here and great examples. Cheers
No worries!
Very nice video, I'll be looking forward to follow your channel in 2021!🔥
Thanks for the support!
Great video no doubt and great instructor as well . Subscribed just now.
Thanks, glad you found it helpful!
Great video!
I enjoyed being a beneficiary before my income exceeded the hecs-help threshold.
Well explained!
Yeah I bet! You have to be careful with the HECS threshold eventually.
Thanks heaps for watching! Glad you got some value out of it!
Awesome video on a complex topic. Hopefully these new tips give people some initial guidance and realistic insights before jumping in head first when it may not be right for them.
Thanks! Yeah that's the main point I want to get across, don't just set up a trust because you've heard you can save some tax. I feel like a lot of people also get advised to do it just so they can charge them a large amount of fees! They definitely can work but you need the right reasons and situation!
@@EthanRooshock 100%. sounds sexy and necessary, but it has to be right for the person.
@@haydenwilsonx Yep so so important!
Very detailed explanation
Thanks!
A very interesting video. I am currently updating my Will and want to ensure that my grandkids (3) are looked after re: education into the future, as well as ensuring my adult kids (2) can survive well too. I suppose I need to talk with my accountant. The video was well presented although some of the "facts" quoted were a bit daunting. Well done, Ethan.
No worries! Yeah definitely worth chatting to your accountant anytime a trust is involved.
Mate I really enjoyed this video, very useful. For a future video maybe you can delve a little more into bucket companies....
Thanks! Yeah definitely a good idea, I'll make sure I add that to my list! Thanks for watching!
Great Video i subscribe💝. Well Put together. Peace and Prosperity this New Year. 💝...
Thanks!
Great video. Seems like it's only beneficial if husband and wife are in different tax brackets (besides asset protection etc). This feels like it's going to become less relevant as the tax structure is changing. This financial year it's already $45k-$120k in 32.5% tax bracket (prev $37k-$90k, above which is 37%). And the plan is to make it flat 30% tax for $45k-$200k in a few years (Jul 2024). Not many ppl will be earning over $200k a year.....
On another note, I feel like husband and wife's income should be pooled together when doing tax returns as a default (but it's not at the moment). It's already treated that way for Centrelink and any government benefits and medicare levy surcharge etc. So the government obviously sees family as earning and spending money together. The fact that you have to pay to set up a trust and ongoing yearly costs to do this is stupid.
Yeah that's a very good point and definitely has reduced some of the benefits. The main situation now where it works from a tax point of view is when one of the partners isn't working at all. Using up the tax free threshold.
That's a really interesting point! It would make a lot more sense considering they do treat income as combined when it comes to Centrelink. Maybe one day if they do a full review of the tax system!
Thanks for watching, glad you got some value from it!
@EthanRooshock - Firstly thanks for the well explained video. I have a property bought under a family trust (trustees by wife & I). Say in 10 years, if we sell it, can we distribute the capital gains to my adult children (who will be adults then) after adding them as beneficiaries of the trust? Note, the kids were not on the title when we bought the property. Thanks
Depends on what your deed allows. Definitely would suggest getting advice from your accountant regarding it.
In general, if the trust allows it, it should be fine but again, you need to get that individual advice.
Great video thanks mate. A question on beneficiaries - can you have overseas beneficiaries like mum and dad and what tax would they have to pay if they don't reside in Australia?
It's a bit more complex as the trustee will likely have to pay tax. Definitely recommend seeking further advice.
@@EthanRooshock Sure, thanks will do.
@@fnbstrader1026 No worries!
Is a foundation similar to the structure of a trust?
Not 100% sure what you mean by this sorry?
What I do not understand is, how does the trust get money or assets in the first place?
Normally either a gift or a loan. A trust can also be the entity a business is being run through, so the trust could start earning money that way.
Can you expand on how a gift is made to a trust or how it takes out a loan? If the lender wants a guarantor, who can that be?
Speak to your accountant, definitely need individual advice here.@@user-qv5mv6es2k