"Any Trustee may from time to time charge and retain out of the Trust Fund such fees as are reasonable."
So yes, I do believe I shall be having a little chat with my accountant when next we meet, as to just what might be regarded as 'reasonable fees' for 'any trustee' to 'charge and retain out of the fund'.
Just a few that pop immediately to mind (with the primary asset of the trust being property) are:
* A property management fee
* Lease renewal fees
* Fees for labour actually doing and/or even planning R&M work and/or improvements
* A gardening and general yard maintenance fee
* A fee for managing the trust affairs generally (including but not limited to record and generally collate the information required for the preparation of the fund's annual tax return)
"Any Trustee may from time to time charge and retain out of the Trust Fund such fees as are reasonable."
So yes, I do believe I shall be having a little chat with my accountant when next we meet, as to just what might be regarded as 'reasonable fees' for 'any trustee' to 'charge and retain out of the fund'.
Are you the trustee? Or does the trust have a corporate trustee?
If you are trying to rely on this clause to get around Shorty's proposed changes I doubt you will.
And while I've not looked into it yet, I'll be a bit surprised if there are any 'penalties' as such for bringing on additional trustees.
Assuming we're not talking about a trustee as part of an SMSF....
'Reasonable fees' will not include appointing all the beneficiaries as trustees and paying them fees commensurate to what they would receive as beneficiaries.
Assuming we're not talking about a trustee as part of an SMSF....
'Reasonable fees' will not include appointing all the beneficiaries as trustees and paying them fees commensurate to what they would receive as beneficiaries.
We're discussing discretionary (or what are commonly known as 'family') trusts.
And I fully concur (in my circumstances at least) with your statement that "'Reasonable fees' will not include appointing all the beneficiaries as trustees and paying them fees commensurate to what they would receive as beneficiaries."
That said, even simply charging some 7.5% of the rental income as a property management fee assists.
Plus I'd a imagine a fee of perhaps $100 per fortnight for gardening services could very well be seen as quite reasonable.
It all potentially 'adds up' as they say Zaph.
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
We're discussing discretionary (or what are commonly known as 'family') trusts.
And I fully concur (in my circumstances at least) with your statement that "'Reasonable fees' will not include appointing all the beneficiaries as trustees and paying them fees commensurate to what they would receive as beneficiaries."
That said, even simply charging some 7.5% of the rental income as a property management fee assists.
Plus I'd a imagine a fee of perhaps $100 per fortnight for gardening services could very well be seen as quite reasonable.
It all potentially 'adds up' as they say Zaph.
If you don't have a PM then perhaps you could get away with 7.5%. You can't double dip. Show us all the work you did.
$100 pf will not be seen as reasonable for gardening.
You're on shaky ground.
Your last few posts prove that you can speak English; you just choose to speak jibberish.
If you don't have a PM then perhaps you could get away with 7.5%. You can't double dip. Show us all the work you did.
$100 pf will not be seen as reasonable for gardening.
You're on shaky ground.
Your last few posts prove that you can speak English; you just choose to speak jibberish.
Most of my neighbours have gardeners. I think they pay about $100 per service, which is about fortnightly in summer and monthly in winter. Every now and the I mow my neighbours footpath when it gets a bit long, and they shower me with food. They make a lovely Crème Brule'
If you want lawns mowed, raked up, hedges trimmed, trees pruned etc it does take a couple of hours. Then there is the pool to clean....
Take risks - if you win you will become wealthy, if you lose you will become wise
$100 pf will not be seen as reasonable for gardening.
No, I feel 4 hrs per fortnight @ $25/hr would very well be seen as quite reasonable to cover time taken for mowing, edge trimming, spraying of weeds generally including in paved areas, control of yard ants, weed and feed of turf plus periodic patch repair of same and top dressing, trimming of trees and hedges, time taken periodically to top up bark gardens, gerni paved and concreted areas, travel to obtain materials for same and dumping yard waste, as well as doing little assorted 'odd jobs' around the garden.
zaph
1 Aug 2017, 12:32 PM
Your last few posts prove that you can speak English.
If you've ever sincerely doubted that, you're rather less intelligent than I've sincerely assumed you to be ...
This will affect me. Might be time to close my family trust soon. Had a good run for 10 year.s
Hey
Double check with your accountant your personal family situation there could be ways to support tax minimization...
herbie
1 Aug 2017, 12:55 PM
No, I feel 4 hrs per fortnight @ $25/hr would very well be seen as quite reasonable to cover time taken for mowing, edge trimming, spraying of weeds generally including in paved areas, control of yard ants, weed and feed of turf plus periodic patch repair of same and top dressing, trimming of trees and hedges, time taken periodically to top up bark gardens, gerni paved and concreted areas, travel to obtain materials for same and dumping yard waste, as well as doing little assorted 'odd jobs' around the garden.
You are very hands on Herbs.. so you will save $$ on your props.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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