Hi There.
just read the other question on trust and have some questions.
we are slowly working to build our investments.
at the moment have own home on 6 acres, which has been rezoned and now can be subdevided, if we want and also have one investment property on quarter acre block (aussie dream).we have 3 children, 18, 20, 23, university students.
can a trust protect assets in the future so that only our children can claim on our assets and not their prospective partners .
I hope you understand my question, we just want to protect our assets, in case something happens to us.
Yes, trusts can be good for this. But the family law court can unravel trusts too, so they may not be 100% effective in this area.
However, your existing assets will incur stamp duty and possibly CGT if you were to transfer them to a trust.
A way around this may be to leave as is, and to gear these properties up by having a trust take a mortgage over them. So if attacked, there will be no equity left for anyone to grab.
Terryw
Discover Home Loans
Parramatta
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Originally posted by Terryw:A way around this may be to leave as is, and to gear these properties up by having a trust take a mortgage over them. So if attacked, there will be no equity left for anyone to grab.
Loving your work and your thinking Terry. That’s a gem. Now I’m wondering how many people would think of that prior to just copping the hit?
A lovely shot atraight around the end game into the goal.
He Shoots, He Scores…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
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Mob: 0404 056 055Thanks Stuart
It may be still suseptible to attack, but anyone doing a search would see the mortgage and probably assume there is no equity there and not go the extra steps and hopefully drop the case there. Suing someone is costly, and people generally only proceed if there is a hope that they can be some money in the end.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
To take it a step further, borrow in your name through LOC, gift money to trust which then lends the money back to you to put back on the loan. The affect is a negative equity on paper but in reality your position has not changed.
Through some creative loan agrements with your trust it can be arranged that there is intrest accrued but no repayments untill the trust calls for them. This will allow for capital gain in your Asset without having to refinance in the future.
If someone attacks you the trust calls for the intrest to be paid, and as it is a registered loan it will be paid before any litigant. But where is the money really going, into a trust that you control.
CATA
Asset Protection Specialist
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