The family home is traditionally the first asset that people acquire. Due to the emotional nature of the purchase the majority of people give little if any consideration to structures that can be used for the acquisition of the family home.
Should I acquire the family home in a trust? Should I acquire it in my spouses name? These are questions that should be asked when considering how to structure the family home.
In the majority of instances the family home should NOT be acquired in a trust. The acquisition of the family home in a trust has many negative consequences that outweigh any perceived tax benefits from the claiming of the interest on the loan used to acquire the residence. Land tax and capital gains tax are two taxes that attract concessions in relation to the family home. Those concessions are lost if the home is acquired in a trust.
The ownership of the family home should be restricted to individuals. If a married couple is acquiring a family home then consideration must be given to acquiring the home 99% in the partner who takes no risks (ie directorships or business owner) and 1% in the risk takers name. This has the effect of limiting the exposure to creditors to 1% of the market value of the home while providing some control to the risk taker.