Originally posted by reidpg:
Andy,
Although Trust deeds are pretty standard. It was simple for my account in Sydney to arrange to set up a Discretionary Trust and Trustee Company (would recommend that as you can then control what the trust invests in rather than Trustees)

The common misconseption it that trust deeds are standard. They are as…[Read more]

A good one for your accountant to answer.

I believe it comes back to what the money is used for.
eg. You owe $200k and borrow another $100k for income producing assets (shares, IP or whatever).
Total borrowings are $300k with 2/3 non deductable debt (PPOR) and 1/3 deductable debt (for investment). So 1/3 of the intrest payments (not principle…[Read more]

Hi Elkam

I would not use a unit trust to purchase property. The simple answer is because if I had $1 mll in property inside a unit trust, and there are two units from the trust, What is each unit worth?
$500 000. It’s far to easy to determin who owns what in this type of structure and it give little asset protection. Unit trusts were just deemed…[Read more]

You could turn it back on the tennants.

If the IP was clean and tidy there would be nothing for the ants to eat and they would go elsewhere to find food.

If you have had the pest controlers in and had the IP sprayed, there should be no reason for the ants to be there unless the tennants are grots.
Just my opinion.

CATA
Asset Protection…[Read more]

Hi Michelle

Not worth the effort IMOP. A new trust would be easier and probably cheaper.

Alot of amendments would be needed and then to resettle the trust. I’m having nightmares just thinking about it.[weird]

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

HDT- Hybrid Discretionary Trust

I work for myself and no I don’t have a website. E-mail me if you want to chat.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

I use the same corporate trustee if purchasing another IP. If in business I would set up another corporate trustee.

Save your money and use the same trustee.
I have not heard of the surcharge but if it is on a discretionary trust then any other trust you would use for property investing would have a surcharge also IMOP.

CATA
Asset Protection…[Read more]

This would need someone who knows about US laws as well. I am not familliar with these laws but here are my opinions.

I will assume you are an Aussie resident investing in US property in your personal name.

Setting a structure in place in Aus. and transfering the IP into the trust may incur CGT, as you will need to sell the IP to the…[Read more]

Selling your IP to the trust is like seling it to someone else. There will be CGT and stamp duty involved, then to sell it again and incur these costs again.

If you want to sell the IP, sell it in your name and then set up a structure before you invest in your next deal. CGT is calculated in your next tax return.

This is why structuring before…[Read more]

Thanks stuck-at-two but I don’t drink beer.
How about a bottle of red?
Not everything is about the money.[thumbsupanim]

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by Terryw:

If before going bankrupt they sold their house to someone (including a trust) within a certain time frame, this sale can be reversed. This time frame was 6 months but recently the law changed on this – think now 5 years.

5 years before the commencement of the bankruptcy unless the transferee proves that the…[Read more]

Originally posted by Terryw:

Setting a non trading company as trustee is far better for asset protection and something I would do.

A trust can purchase property in any state but will need to be stamped in that state. If trust is in NSW and purchasing in Qld then no stamping is required as trusts do not need stamping in Qld.

CATA
Asset Protection…[Read more]

I don’t see what the big deal was. If your not intrested just scroll past.

Thanks anyway Steve, keep up the good work.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

The trustee company should be a NON Trading Company. If the company trades there is an avenue for litigation. I use either 1 or 2 shares, one for each director. The director being garantor of a loan inside the structure will not hurt your asset protection. It could prove to be beneficial for you personally as it could be seen a personal debt.

The…[Read more]

What is the entity that is doing the trading.
I will assume that it is the trust, then the correct name is XYZ Pty Ltd as trustee for ABC Trust.

You can also register a trading name for the trust. Visit the Office of state revenue website for your state. It’s free.

I agree with Simon. Use all the space on the card and use benifits of your…[Read more]

Find out about a Discretionary trust and also about a corporate trustee.
Due Dilligence is important and I’m happy to see that you are doing it.

Let me know if I can help.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by stuck-at-two:

Does this mean it only applies if you are working in/or as a company.(director of company)????

DIFFERENT CIRCUMSTANCES WILL HAVE DIFFERENT OUTCOMES. IF YOU ARE IN A LOW RISK BUSINESS YOU SHOULD BE OK.

If I am a purchasing I.P’s under a trust, then get divorced,(properties purchased before marriage) this still…[Read more]

You seem to be missing some important points Noodles.

“The fundamental purpose of a trust, from a legal point of view, is to distribute funds or income held, or received, in trust.”

If the sole purpose of a trust is to distribute funds then this is not tax minimisation but tax avoidence, the sole intent being to “Not Pay Tax” is part 4a of the…[Read more]

I (and alot of others I know) do not agree with her on this subject.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au