Dobby

Which one do you want to use, A Family Trust or a Discretionary Trust?

If your accountant thinks that they are the same, get a new accountant!

I agree with Michael. Structures need to be flexible and cover as many options as possible, without being over complex.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

I like to but and hold, untill something better comes along. At which time I will consider the options.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Hi Len

I would have to disagree strongly.

The trustee is responsible for anything that happens inside the trust, and that brings liability issues. If a company is not required as trustee, then why have they been used for years?

My thaughts are that they are trying to keep costs down as a mutiple trust structure with a corporate trustee is…[Read more]

It is best to have structures in place first, so this would be better. It would be up to the seller if you can put “and or nominie” on the contract as they need to agree.

Make sure that the trust is settled before settlement of the house, I like it this way.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

This is the rumor that I am hearing also, and what I have been saying for a while. But it is just an opinion.

I would question the price as a combination of trusts could be expensive.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Agreed Graeme

Both are gret guys that have helped me alot.
It is a beautifil house in Vanuatu and we have been there also, intresting place to find.

Alynwin

I guess you do not want someone to follow up your problem with Endre himself, for free. If you do please e-mail me as it will be worth your time.

CATA
Asset Protection…[Read more]

I noticed that Asset Protection was not mentioned.

For me, all comments point to a unit trust of some sort. Maybe a Hybrid unit trust as I said before. All I can say is that if you are going with this Property Investor Trust, then ask Ed Chan about maintence costs as he knows this structure best(if it is a special trust that is, I still have…[Read more]

Originally posted by Ron Burgundy:

He suggested a hybrid trust for its flexibility and quoted me about $2k
1. is this a suitable structure for a young investor starting out?

Depends on what you ae doing. It has it’s good points and bad.

2. is the price reasonable?

If it includes a corporate trustee, that is a bit cheap. Ask what he charges for…[Read more]

The choice is yours alone McHenry. Structure or not, both advantages and disadvantages.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by Cabo Wabo:

My question is “would the court nullify a trust only if there were kids involved? or is it that trusts are just vulnerable, period.”

A trust is not unbeatable. The Australian Family Law Court will look through any “Australian” structure, kids or not, married or defacto.

They will limit liability. It is all smoke…[Read more]

All this must be taken into account when any structuring is to be done. It is nothing new, but my only question is the land tax issue as I can only see that from a unit trust(maybe I am missing something as I have not put to much time into Ed Chan’s trust).

Everything that you have mentioned can be achieved without including a unit…[Read more]

Three different opinions are not always three right or wrong. Different trusts and structures for different purposes. I look at it from an Asset Protection point of view.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

The loss can be deducted of the capital gain to reduce CGT( if there is a gain) otherwise it is lost.

Costs to transfer would possbbly include selling the property to another trust so something like this

CGT (if any)
Stamp Duty (possibly)
set up of new trust
maybe some other legals

In other words, alot of money. This would be a last resort for…[Read more]

The trust must do all of the trading if you want asset portection.

As for the loans you will have to speak to a mortgage broker for that one as I am not in the know about that one.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

From my “To early Sunday morning thaughts”

The trust that Freedom3 has is a discretionary trust, and hence the problem of not getting the -ve out of the trust. Not a Hybrid Discretionary Trust. There is no units in a discretionary trust to buy.

Other than offsetting the -ve with something, there would be restructuring into a HDT but this would…[Read more]

Fair enough Kp.

Forgive me for being sceptical but I think I know where he is comming form (without talking to him so I might be wrong).

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Hi McHenry

You would be the director of a company. The company is a trustee of a trust and does nothing else. The trust is the entity that holds the asset.

Benifits are
Asset Protection- it will limit your exposers to potential gold diggers. NSW and Qld are the 2nd and 5th most litigated state in the world, per capita.

Estate Planning- can…[Read more]

I had a quick search and a look on the net..this guy lives in Vanuata?

That is correct. He has just built a beautiful house overlooking the lagoon.

He promotes “Off Shore Investing” and how to do it by investing in overseas Mutual Funds such as the Templeton growth fund,Nicholas Applegate US Growth Fund etc.

He not only promotes it. but does…[Read more]

Exellent piont Rikky.

Limiting exposure is often overlooked as some think that if they have a single trust then they have protection. As for the 5 deals per trust, this is common but it is also a personal comfort level. Some have $1mill per trust, some have eack house in a seperate trust.

I like your thinking as to 5 per trust for me…[Read more]

It is possibly based on a unit trust as this is the only way to get arround land tax. If it is there is, not much good for Asset Protection as units have a clear unit value.

It maybe a Hybrid Unit Trust.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au