Hi guys I am sure some of you know this as a second nature but it's difficult for a total newbie like me.
Basically I want to set up a family trust with my partner to engage in investment such as etfs and lic. I might even do fx trading and other investment of course it depends on how much I have. Deposit rate is at record low so other investment is probably better than bank deposit.
What I want to know is how can I set up a trust (I understand I need to speak to a lawyer to come up with a legally binding trust deed first) and then once the trust is set up. I need to create a bank account for the trust and then I can start to invest.
My question is how difficult is it to find a good solicitor to do the trust deed with reasonable fees and how much does the trust creation cost with stamp duty and government fees.
Is there any other fees I should be aware before going ahead? Any potential risk I should be aware and look out?
Is the a good article I can read on this? Further down to the line I want to set up company to engage with the trust etc. This sounds complicated but I wish to find out what I can and cannot do before going ahead. All advices and critics are welcome.
Here's the very short starting point.
You need to speak with both a lawyer and accountant to determine if this is appropriate for you. A lot of people have ideas about family trusts for all sorts of reasons, but the reasons to have one have been diminishing over the years.
A trust is going to cost you in legal fees to establish and in accountancy fees ongoing as the trust will then need to file its own tax returns separate from your own.
The first thing you need to take advice on is whether or not a family trust is for you and whether you will get any benefits from it (or it just becomes another cost and administrative burden). Any half way decent lawyer and accountant can get these things set up for you … it's whether it is right for you that is the more important question at this stage.