Protection using TRUSTS

Viewing 6 posts - 1 through 6 (of 6 total)

centralian
Participant
@centralian
Join Date: 2003
Post Count: 14
August 11, 2003 - 2:28 am
Hi all,
I’m interested if anyone knows any stories about property investors that have been sued and where a Trust put in place would have protected them.
We hear about protecting your assets by setting up a Trust, but never hear anything about people being sued…
So are Trust that important…????
Centralian.
centralian
Participant
@centralian
Join Date: 2003
Post Count: 14
August 11, 2003 - 8:00 am
Looking at the reponse this thread has had. Makes me think that know one has heard of anyone been sued and Trusts are unnecessary.
Dont get me wrong I’m not against Trusts.
KennyC
Member
@kennyc
Join Date: 2003
Post Count: 17
August 11, 2003 - 8:11 am
Nah i haven’t heard nothing, but it would be nice if anyone has to tell us! It owuld be an interesting topic!
I came back from seeing my solicitor and accountant today, trust and company structure is looking good from what I am hearing! If anyone thinks otherwise, please speak up!
brionyc
Participant
@brionyc
Join Date: 2003
Post Count: 3
August 12, 2003 - 3:30 am
Hi! I work in a law firm as a conveyancing clerk and am frequently involved in purchases by trusts. In Victoria, it is not possible to purchase a property in the name of a trust, all documentation must either be completed in the name of a company, or in the name of the beneficiaries. If it is a company, they normally execute a document stating that they have purchased the property as trustee of the trust so there are no long term problems.
minnar
Member
@minnar
Join Date: 2003
Post Count: 4
August 12, 2003 - 4:21 am
my understanding is:trusts can be a powerful vehicle for many reasons icluding:
protecting assests if your job includes being a director of a company that has the risk of being sued and therefore directors being personally liable for debt
if you already earn a high income and +ve gearing is your chosen investment vehicle then profits made can be distributed to trust members, saving the high income earner tax
Advice on whether to purchase investment properties within a trust should be sought from a professional with particular reference to your own personal situation.
Regards
JH
Member
@jh
Join Date: 2003
Post Count: 6
August 12, 2003 - 4:55 am
I heard of trust being sued by beneficiaries for unpaid distribution. But I only “heard”, nothing to substantiate. Tho it sounded legit.
People and relationship change overtime, and people are influenced by people. Your lovely neice may one day have a boyfriend/girlfriend who is a lawyer and discover that she may sue you for unpaid distribution from a trust entered in the book many years ago.
Some people’s family perspective changes when they know they could potentially have $1m in the bank…
Sons sue fathers
Nephews sue uncles
Ex girlfriends sue ex boyfriends
The list goes on.