It is critical for any investment to be held in the optimum structure taking into account the needs for asset protection, estate planning, complexity, flexibility and stakeholders.The Fixed NSW Property Trust™ provides property investors in New South Wales with benefits in relation to land tax over other structures, where flexibility is not a primary requirement.
A unit is a portion of the trust, which gives the holder the right to a fixed proportion of the trust income. Income is distributed via the units to the individual (and or other entity). Beneficial ownership is determined by the amount of units held by a person. Units can be sold to other people, entitling them to the profits or capital of the trust. Fixed NSW Property Trusts are very useful, especially for investors because different types of units can be issued. In simple terms (not legal) it is like having shares in a company. The Fixed NSW Property Trust™ in New South Wales has available the land tax threshold for that state. Due to the nature of the structure there is no real asset protection, which may leave the unit holder exposed in the event of successful litigation where the property could be sold.
Fixed NSW Property Trusts offer many advantages to property investors in New South Wales:
For New South Wales property investors only.