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can a beneficiary get out of a trust?

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Winston84 View Drop Down
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  Quote Winston84 Quote  Post ReplyReply Direct Link To This Post Topic: can a beneficiary get out of a trust?
    Posted: 16/June/2012 at 02:17
I would like to find out if I can get free from being a beneficiary of a discretionary trust. My parents supposedly invested money on my behalf in the trust/small property. So I am continually harassed and traumatised by Centrelink and I am taxed at the highest rate when I do paid work. I dont earn any income from the trust and I never signed anything to do with giving money to the trust yet half of the investment is attributed to me. I cant access that money, it isnt my property and yet I am penalised. Is this how parents avoid paying too much tax? move money into your children's name.
So can I get out of this? can I give the money back to the trust?
does anyone know anything about trusts?

iconoclast View Drop Down
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  Quote iconoclast Quote  Post ReplyReply Direct Link To This Post Posted: 16/June/2012 at 15:24

Have you spoken to your parents about this "trust" property? What are their plans for the property which they say they hold on trust for you? When can or will you ever benefit from it? When did this trust come about? What is the property now worth?

I would not be so quick to reject their "largess" - I'd be seeing how to realise that asset they hold on trust for you and converting it into; for example; a home for you which is means-test free.

Why on earth would you chose to turn your back on something you own like this trust property; which you have already been penalised for owning; just so you can scrape by on C'link benefits? Makes no sense to me sorry.

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MartinO View Drop Down
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  Quote MartinO Quote  Post ReplyReply Direct Link To This Post Posted: 16/June/2012 at 15:39
I suspect that money is being taken from the trust in your name but you are not receiving it, that could be why you are paying top tax rate and why Centerlink think you have an income.

Speak to you parents about this, if I am correct with my guess, they can be required to account to you by law for any funds paid in your name but not received by you. They can also be required to hand those funds over to you.

Once you have spoken with them see a solicitor if you have any concerns.
I am NOT a lawyer. Anything said is NOT legal advice.

Please post your legal questions in a forum rather than sending a PM. Thanks.

boony View Drop Down
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  Quote boony Quote  Post ReplyReply Direct Link To This Post Posted: 22/June/2012 at 16:12
Agree with above.

Your income will appear on your yearly tax assessment. Does it match what you earn or is a lot more?

Or maybe you are allowed to access the money and don't know about it (or don't get it), (but Centrelink does which explains why they won't give you benefits).

Actaully this is all a bit strange the more I think about it..




Edited by boony - 22/June/2012 at 16:17

iconoclast View Drop Down
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  Quote iconoclast Quote  Post ReplyReply Direct Link To This Post Posted: 22/June/2012 at 17:24

Yes it is all a bit strange. Poster is not telling us all the facts and it seems has not been back. Another one - sigh.
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AsiaOilDude View Drop Down
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  Quote AsiaOilDude Quote  Post ReplyReply Direct Link To This Post Posted: 22/June/2012 at 19:14
Horsepoo Icono and other naysayers. I've seen this done to a good friend, his brother listed him in a family trust without his say so and for some years, until he objected and had himself removed, had exactly the same problem. Another friend was listed in his fathers farm trust and in the end had to sue his father for the outgoings listed in his name, they came up with a compromise and he now owns a house in Claremont from the deal (that was previously owned by the trust). This type of abuse is quite common and I have full sympathy with the OP. The OP should demand a full accounting and payment of any incomes ascribed or negotiate a settlement as my friend did.
Not legal advice. Personal opinion only. Seek legal advice from qualified personnel only.

iconoclast View Drop Down
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  Quote iconoclast Quote  Post ReplyReply Direct Link To This Post Posted: 23/June/2012 at 11:26

AOD I'm not knocking OP - it's just that there seems to be no response or follow-up from this person. You will find I agreed that OP should go after the trust of which s/he has been penalised for being an as yet otherwise un-benifitted "beneficiary". Agree - go after the money!
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MartinO View Drop Down
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  Quote MartinO Quote  Post ReplyReply Direct Link To This Post Posted: 23/June/2012 at 16:29
He does not appear to want to know, he has not been logged in since 30 minutes after making the original post.

Makes one wonder if there is a problem and the parents are withholding the trust money for a reason, however if he does not come back we'll never know.
I am NOT a lawyer. Anything said is NOT legal advice.

Please post your legal questions in a forum rather than sending a PM. Thanks.

AsiaOilDude View Drop Down
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  Quote AsiaOilDude Quote  Post ReplyReply Direct Link To This Post Posted: 23/June/2012 at 17:33
Ah got it.
Not legal advice. Personal opinion only. Seek legal advice from qualified personnel only.

Winston84 View Drop Down
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  Quote Winston84 Quote  Post ReplyReply Direct Link To This Post Posted: 27/June/2012 at 19:27
thanks for all your feedback - I have not responded because it took a while to work out how to get back to this site and find where my original question was.
It seems it is being taken out of my hands whether I like it or not. Trustee is selling the property. As beneficiary I am supposed to give a signature if any capital is going to be distributed I think. However I think the trustee will with the help of legal friends pretend this isnt so. Lawyers are in cahoots with trustee. I do not know of any lawyer who spexes in trust law in WA. It seems that even though Ive contributed money to the trust I dont get any say in sale price or how funds will be spent. Theres even uncertainty around funds originally given by trustee to the trust, on my behalf. No gift tax was paid. Im not sure if its a unit trust or a discretionary trust which owns the capital.

rambler1 View Drop Down
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  Quote rambler1 Quote  Post ReplyReply Direct Link To This Post Posted: 28/June/2012 at 16:33
Ive replied to your pm.

you will need a lawyer here to look at the facts as its clear you dont know what kind of trust owns the property, if in fact it is a trust, and whether the trustee is acting in you best interest or not.

Therefore see a solicitor asap. In the interim You can do a search on the property to establish ownership, a trust needs to have a title interest lodged agaist the property. If the trust owns the property you can caveat the property to register your interest.

Im not sure what the lawyers are in cahoots with the trustee it seems unusual for something like this.

All good commercial lawyers will know trust law so have a look around.

Edited by rambler1 - 28/June/2012 at 16:35
Luke 11 46: Woe unto you also, ye lawyers! For you load men with burdens that are difficult to carry, and you yourselves won't even lift one finger to help carry those burdens.

AsiaOilDude View Drop Down
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  Quote AsiaOilDude Quote  Post ReplyReply Direct Link To This Post Posted: 29/June/2012 at 13:35
I doubt a lawyer is going to be in cahoots for some piddly little property trust - however the lawyer (solicitor) is probably not talking to you for other reasons. The advice above is good - get your own guy on the case.
Not legal advice. Personal opinion only. Seek legal advice from qualified personnel only.

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