1 Protect your property from creditors and lawsuits

By holding property in a trust, the property’s title is not held in your personal name. Instead, it’s held with the trust. This means that, were you successfully sued, your property would be out of reach from creditors and still safely in your control.

2 Reduce rental income taxes

Property trusts let you distribute rental income to low-income beneficiaries such as spouses, children, children’s spouses, grandchildren, and their spouses. So you save thousands in taxes each year, increasing your net return on investment.

3 Minimize capital gains tax when you sell

Save tens to hundreds of thousands of dollars in capital gains taxes by accessing the 50 percent capital gains tax discount that applies to assets held more than 12 months. Distribute reduced gains to beneficiaries on lower marginal tax rates.

4 Increase wealth-creation potential

With reduced taxes on rental income and capital gains, property trusts can provide additional cash flow and capital for use in reducing property holding costs, repaying investment loans faster, or purchasing additional properties. This makes property trusts a powerful wealth-creation tool.

5 Keep property in the family for generations

Transfer property to future generations without needing to change property ownership, pay stamp duty, or trigger unnecessary capital gains taxes. Accomplish this while still offering beneficiaries the same tax and asset protection benefits.

6 Protect property from future lawsuits against your children

If structured correctly, a property trust can protect your property assets from future family or relationship breakdowns or lawsuits against your children. Tax Effective can help you keep property in your family lineage.

• squareUnderstand your property ownership options.

• squareDetermine whether a property trust is the right option for you.

• squareProtect your property from lawsuits.

• squareMinimize property taxes.

• squareKeep your property in your family lineage for generations to come.

• squareSet-up and administer your property trust.