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Hi, my Dad wants me to be a trustee and beneficiary for a property he wants to buy in Tasmania and live in it. I get no benefit from the transaction. No rental income...nothing. What am I obligated to do if I do go ahead with this? I would have to declare this on my tax but if I'm not receiving rental income, what's the benefit? What am I also liable for if anything goes wrong? Thanks
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As a trustee you have legal obligations that you should consider carefully before agreeing to become trustee. You should discuss this with a lawyer before taking any positive step.
Thanks Patrick. I intend to discuss with a lawyer but just also wanted to know what I need to do financially
I agree completely with Patrick. From an Accounting / Tax perspective more information is needed to correctly advise, ie type of trust, your income sources, are you sole beneficiary, does the trust own the entire property or does it hold units in it.
Best advice is to seek out an experienced Accountant close to you who can assist. Also someone ideally experienced with trusts in TAS as often land tax rates are higher on properties held in trust vs owner occupier