trusts

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Understanding Trusts and Their Benefits in the Property Market

A trust is a legal arrangement that allows you to manage and protect your assets by appointing a trustee to oversee them for the benefit of designated beneficiaries. In the property market, trusts can be particularly advantageous, whether you’re buying, holding, or selling real estate.

There are several types of trusts you can consider, including:

• Discretionary Trust:  This is a type of trust where the trustee has the flexibility to decide how to distribute income and capital among the beneficiaries. It allows the trustee to choose which beneficiaries receive distributions and in what amounts. 
• Family Trust: Designed to hold family assets, this trust can help protect wealth for future generations. The trustee is responsible for overseeing the trust's assets and making decisions about distributions to beneficiaries, who are typically related individuals, such as parents, children, and other relatives. 
• Unit Trust: This trust divides ownership into units, making it suitable for multiple investors pooling resources in property ventures, with each unit holder entitled to a share of income and capital.
• Asset Protection Trust: This trust is designed to safeguard your assets from creditors, providing peace of mind while enabling you to enjoy the benefits of property investment.

Utilising a trust for property investments can offer numerous benefits, so speak to your tax agent or financial adviser about these benefits and if a trust is right for you.

Whether you’re a seasoned investor or a first-time buyer, setting up the right trust can lead to greater flexibility and security in your property strategy.

Disclaimer: The information provided regarding trusts is for informational purposes only and should not be considered legal or tax advice. 

Pathway Finance Solutions is not a legal or tax representative, and we recommend consulting with a qualified professional for specific guidance related to your individual circumstances.