So describe further where your family trust money comes from, Pauk...
Dear me, my Great Grandfather started the original Trust where the proceeds/earnings only can be distributed and not the capital. That rule has lasted till today and there have been two CGT events since then. All distributions are taxed and counted for any pensions or welfare etc. My Grandfather added to the capital as did my Dad and I fully expect to also add to the capital when I leave the home planet.
The Trusts are not about reducing tax, they are about preserving the capital, so one particular generation does not blow it. I can not use the Trusts as collateral and will never get an inheritance as such.
IMO, it was a good vision by my Great Grandfather and it has served my family well.
Dear me, my great grandfather started the original Trust where the proceeds/earnings only can be distributed and not the capital. That rule has lasted till today and there have been two CGT events since then. All distributions are taxed and counted for any pensions or welfare etc. My Grandfather added to the capital as did my Dad and I fully expect to also add to the capital when I leave the home planet.
The Trusts are not about reducing tax, they are about preserving the capital, so one particular generation does not blow it. I can not use the Trusts as collateral and will never get an inheritance as such.
IMO, it was a good vision by my Great Grandfather and it has served my family well.
So does capital within the trust count for your future age pension eligibility purposes?
So does capital within the trust count for your future age pension eligibility purposes?
Yes, if I was in control of the Trusts or contribute funds. At this stage, I have no control and have not contributed. I will contribute on my death. It is not my capital, not my children's nor their children's after that. In my mothers case, she did not contribute to the Trust and has no control at all and only the distributions are counted as income for her pension income test.
You and R2M managed to wreck that website soon after becoming mods.
I believe little you claim.
In fact Dan had to remove R2M as he went crazy and was transferring ownership etc. It was only after that (and my banning by R2M) that I became involved as a Mod. Seems you do not know exactly what happened at all.
Yes, if I was in control of the Trusts or contribute funds. At this stage, I have no control and have not contributed. I will contribute on my death. It is not my capital, not my children's nor their children's after that.
The trust is nonetheless is an economic asset from which you derive benefit during your natural life, and which you seek to deliver intact--nay, augmented with your own tax-free after-death contribution--to your offspring. Yet if were a PPoR or a superannuation fund in the hands of somebody else, you'd seek to tax it into oblivion.
Cuz somehow, boomers who seek to leave something to their children are "selfish".
The trust is nonetheless is an economic asset from which you derive benefit during your natural life, and which you seek to deliver intact--nay, augmented with your own tax-free after-death contribution--to your offspring. Yet if were a PPoR or a superannuation fund in the hands of somebody else, you'd seek to tax it into oblivion.
Cuz somehow, boomers who seek to leave something to their children are "selfish".
Hypocrite, thy name is Pauk.
You have lost me. The capital in the Trusts is not my capital, not my kids capital, nor their kids. Any 'benefit' I get form the Trusts is taxed and counted as my income.
I have no problem with any assets that I earn and acquire, being taxed or counted into the welfare asset test, inc my Super or PPOR.
Any 'benefit' I get form the Trusts is taxed and counted as my income.
And with a friendly choice of trustee, the amount of that income can be precisely tailored to maximise your Age Pension benefit, in most years, or splash out for that round-the-world cruise, in some year where you feel like being a little spendy.
All of it happening without the capital being counted against your Age Pension eligibility.
Yet you rail against the same treatment for a PPoR.
And with a friendly choice of trustee, the amount of that income can be precisely tailored to maximise your Age Pension benefit, in most years, or splash out for that round-the-world cruise, in some year where you feel like being a little spendy.
All of it happening without the capital being counted against your Age Pension eligibility.
Yet you rail against the same treatment for a PPoR.
You saw an opportunity and you grabbed it - good for you.
But when you first registered Toowoomba.com thousands of other people did much the same by grabbing domain names that would be wanted by commercial entities at a later date and they made a killing.
But that's an opportunistic grab by someone who had some industry knowledge of what would be in demand in the future. It's not quite the same as starting a new domain and making it a commercial success by driving traffic to it and selling a product or a service. You made a capital gain on the domain name.
It's funny that you criticise older Australians who bought a modest dwelling many years ago and now their asset is worth something, and for their blind luck you want them to reverse mortgage their house to fund the pension that they are 100% entitled to but you're too stingy to contribute to as a taxpayer.
But when you're on the receiving end of some blind luck you put it down to business acumen.
Hilarious.
Any expressed market opinion is my own and is not to be taken as financial advice
This house should have been demolished years ago. The owner of the house lives in Brisbane and has never even seen the house in person. It's full of exposed and degrading asbestos everywhere and the back deck was on the verge of just collapsing. Messy legal battles ensued.
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