Hi
I currently have 3 IPs not in trusts. I am now building 2 new properties and an concerned about asset protection and also want to optimise depreciation and negative gearing aspects. Are Hybrid Trusts the way forward, there seems to be so many arguments for and against? Any advice appreciated.
MEG
If you want to get the negative gearing affect with a trust, one way is using a Hybrid trust. There is a number of options for this and thinking a little different can sometimes be benificial.
You will need some goals and investment stratagies before structuring.
E-mail me if you want to chat.
CATA
Asset Protection Specialist
[email protected]Hi Cata,
On this same topic, would it be worthwhile to get a trust started if it involves only one person? I asked my accountant about this and he said for just one person there wouldn’t be much need as it could still be broken apart and sued seeing as I would be the trustee and/or the only beneficiary so it would look as though I am controlling it with no-one else. He said to speak to a solicitor first. I am interested in it from reading Ed chan’s book, etc, and I have my house and 4 IPs at the moment and am looking to getting more. I am interested in mainly asset protection as I am worried if I get married again or meet someone else my assets are fair game for them to get half if anything goes wrong. I don’t want to lose what I’ve built up. Any thoughts on which way I should go?
Regards Andrea
You wouldn’t be the only beneficiary. What about your parents, grandparents, spouse, future spouse, mistress, children, future children, future step children, future in laws etc.
Even if you have no one now, you don’t know what the future will hold.
Plus there are other benefits including estate planning – I suppose this won’t matter if you have no one to leave your property to?
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
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
Hi Andrea
Yes I believe that if you have assets worth protecting then keeping them in some sort of structuring. The trust could be broken into in rare cases (this will depend on how good the trust deed is).
You can have the future beneficaries that Terry mentioned,but you could also have a company and friends as beneficaries.
There is a number of options that you could choose, but all will not protect you from getting married. The family law courts can look through most structures.
E-mail me
CATA
Asset Protection Specialist
[email protected]Does anyone know if you sign a contract in your own name and then decide to organise a trust, can you buy the property in the trust and modify the contract?
Hi Trish
I don’t mean to sound rude but that’s a headake waiting to happen.
Yes I guess it can be done but it would be far easier (and cheaper) to decide first how you are going to purchase the property.There is also time issues when setting structures in place nd the contract may not be long enough.
Hope this helps
CATA
Asset Protection Specialist
[email protected]trish,
i may not have understood you properly, but i buy all my properties in my name with ‘and or nominees’ after it, so that if i decide to change the structure, i can do so before settlement without any hassle. Say for example, i sold it before settlement, then i would change from my name into the new owners name right before signing transfer papers.
If however, you meant, you wanted to change it into a structure, after settlement, then yes it is a headache waiting to happen. You have to pay stamp duty again, plus all these other costs. Its better left alone at that point.Audrey
I thinkk it may work in some states, but not in others. If the trust was not in existance on the date of exchange, then it may not be able to be nominated – without paying stamp duty again. Better check this with your solicitor before trying.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
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
Agreed Terry
If you know that you are going to purchase an IP and you want it in a trust for whatever reason, then save the hassle and set yourself up first.
You would not put in an offer on a property if you don’t know how much you can borrow, would you? My point is structuring is a part of my due dilligence BEFORE I buy.CATA
Asset Protection Specialist
[email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
