Investment Property Ownership Options

1. Ownership Option: Individual's Name

Asset Protection Issues Equity at risk of claim by creditor
Tax and Other Issues 50% CGT discount. No separate structure required

2. Ownership Option: Joint Names

Asset Protection Issues Half of equity claim by creditor
Tax and Other Issues 50% CGT discount. No separate structure required

3. Ownership Option: Sole or Joint Names funded by loan from discretionary trusts

Asset Protection Issues Family discretionary trust is only an unsecured creditor and has no property claim
Tax and Other Issues 50% CGT discount. Separate structure required

4. Ownership Option: Sole or Joint names with registered mortgage to family discretionary trust

Asset Protection Issues Family discretionary trust is a secured creditor and has a priority claim on property
Tax and Other Issues 50% CGT discount. Separate structure required and a relatively low amount of stamp duty is payable on mortgage

5. Ownership Option: by Children or Extended Family

Asset Protection Issues Problem if family dispute unfolds
Tax and Other Issues May create family and pension eligibility complications

6. Ownership Option: Family Company

Asset Protection Issues Asset protection depends on choice of shareholders
Tax and Other Issues No CGT discount available Ability to keep income in structure taxed at 30%

7. Ownership Option: Family Discretionary Trust (with Company Trustee)

Asset Protection Issues Very good asset protection qualities. Careful attention should be paid to the balances of beneficiary loan accounts
Tax and Other Issues 50% CGT discount. Small business concessions. Separate structure required. Income allocated to company beneficiary taxed at 30% (care is needed for choice of shareholders)

8. Ownership Option: Self Managed Super Fund

Asset Protection Issues Very good asset protection up to complying pension reasonable benefits limits
Tax and Other Issues Relatively low tax rates during both accumulation and pension phases. Benefits preserved

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