My own trust as private lender to my LLC?

[Ben Whittaker]

Hi all, will try to keep this as short as possible for everyone's benefit!

I live in Australia and earn a good salary that has me into the 37% tax bracket.

I invest in property in the US via an LLC, of which I am the only member.

Now, to minimize tax, I want my discretionary family trust to act as a private lender to my LLC. This way, the LLC "pays back" the trust, allowing me to distribute my profits through my immediate family at a much lower tax rate. I'm just not sure where I stand legally.

To me, as long as I have a promissory note in place, it all seems above board, however please let me know if there are any issues with this, or any known precedents known.

Cheers! Ben.

PS: please provide me with information that is general in nature and not legal advice as I will consult a CPA/attorney (saves you having to type it out!)