Investing through Trust

Hi Rajesh.

There’s a lot to consider when thinking whether to invest through a trust. More than I can cover here, and really you should sit down with someone who does this for a living to get proper consulting on your specific situation.

But as a general statement, a trust brings more complexity, more yearly ongoing costs, and more admin to deal with, even if you have a simple portfolio. The main benefits are possible tax savings and asset protection like you’ve said. Keep in mind, you can also invest directly in a low income spouse’s name to achieve some of the same tax benefits

Whether you go ahead will depend on how important those things are to you versus the downsides I’ve stated. You may also want to get some tax advice on the borrowing to buy assets inside the trust as this may need to be done correctly to make sure the interest is tax deductible.

Cheers, Dave