All Topics / Help Needed! / Protecting parents assets when borrowing money to buy a business
Hi all,
I'm after some advice and/or suggestions on the best way to setup some rather complex business, borrowing, family financial dealings.
I own and run a company which is currently about to purchase another company; with the assistance of my parents to borrow the required money using the equity in their property to refinance and 1) lend me the money required to expand the business and 2) perform renovations on their property the loan will be repaid by either myself or the company I currently own.
My parents currently operate a building sub-contracting business as a partnership which is proving to be un-viable in terms of taxation and are looking at establishing a Pty Ltd company to trade through which my father will be paid a wage from and the tax liability transferred to the company, whilst my mother works for a wage.
I want to find out the best way to structure the loan, property ownership and business ownership to provide as much protection of the assets (house) to my parents as well as being tax effective.
There is also intention in the next couple of years to purchase investment property as a family (my parents, myself and my two siblings). Is it possible to transfer their current property into a trust without attracting CGT as it's their primary residence??
I am thinking the best way is to transfer the property into a trust (unsure what sort), which can then take out the loan for the business and what is currently remaining on their mortgage (minimal) and the trust owning a share of both my company and my parents to be established Pty Ltd business??? Is this possible, is it the best way or does anyone have any better suggestions etc???
Thanks for your help!
Hi Scubabenny
You post is rather involved and I believe needs porfessional advice. I work as an asset protection consultant and I can assist you with accurate answers to you queries. I am backed with a team of solicitors who are experts in asset protection structures. We can advice you whether you need a trust for this situation, as well as what type of trust I also have excellent information re 'How to Protect Your Loved Ones from Financial Ruin' – The shocking Truth You Must Discover About Wills
My email is [email protected]
Sincerely
Kevin Wood
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