We are just starting in wraps however I am concerned that operating under a new entity would restrict out borrowing capacity.

You will need a garantor for the loans, Beat to speak to a broker that understands these structures. Some don’t but those on this forum seem to.

Is the Ed Chan structure applicable to smaller players or only those at…[Read more]

Hi Coasty

I have heard recently that using a hybrid or unit trust to invest in a SFSF will be outlawed by 2009. My source is usually correct. What are your thaughts?

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Sounds like you do not have the right structure. I am guessing that the property is -ve gear. If you purchase a +ve gear inside the same trust you can offset the -ve.

Or, Maybe consider something else that can produce income to offset the -ve.

Do a search for “Oxygen Funding” who claims that she can get 3% per mth. This could be an option to…[Read more]

It sounds like a unit trust to me.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Hi Kevin

The company name ismto be on the purchasing document, but the company owns the name only and all traidng should be done through the trust.

Make a minute entry to show that the trustee has purchased the property for the trust.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by carl_vic:

What’s your take on capitalising interest payments using a line of credit for an investment property? Lets say for argument’s sake that the person in question had no non deductable debt and that the rent from the property just hit the LOC as it arrived..

If this is what I am thinking, then the boat has passed on…[Read more]

I heard a quote that has stayed with me.

“If you love what you are doing, you will never work a day in your life”

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

As Terry has said there are mush better ways to protect your PPOR, but a correct structure would be difficult to comment on without some details on what you have now and what type of investments you are going to buy.

Hybrid trusts are good, but I believe that they are over used. If you are -ve gear then probably. Other than that probably…[Read more]

I know people with $10k in a SMSF and get a better return than a fund would give them.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

The Appointor can be changed by executing a Deed
of Amendment. The Deed must be executed by the Trustee and Principal of the Trust.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Grasshopper’s family sue for pain and suffering from the needless loss of a loved one.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by bjb007:

Option Two: Set up a new company and Unit Trust and purchase as equal unit holders.

This one is better but why not set up another structure consisting of Company trustee and Hybrid Discretionary Trust, with the three of you buying equal number of units.

Just my thaughts

CATA
Asset Protection…[Read more]

Hi Simon

That MF pays a distribution every month?
That is correct

Or was it an annual distribution paid in August?
No, it was in one month

Even if the return is 13% every 12 months then it would be incredibly speculative and noone could believe that could be kept up!

It is an offshore managed. No it will not get that every month, but I have…[Read more]

Hi AussieLad

Welcome to the site.

A brief outline of advantages for owning Assets in a trust,

– Asset Protection, NSW and Qld are the second and fifth most litigated states in the WORLD per capita

-Estate Planning, you can will the trust to someone else without transfer costs.

– Tax Planning, you should not be paying more than 30% in most…[Read more]

The trading should all be done from the trust.
Invoices are XYZ Pty Ltd as trustee for ABC trust.

Keep the company a non-trading company.
Why can’t you buy more units in the trust to get more money into the trust.

Hope this helps

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

The trust minutes kept in a plastic sleve with the trustee deed, as any changes must have a record. Nothing special, a minute entry is sufficent.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

I recently found a managed fund that paid 13.5% in August.
Yes 13.5% in one month.

I might stick my million there.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Trust property is said to be legally owned by the trustee, with the beneficial or equitable ownership lying with the trust’s beneficiaries. The trust is not technically a separate legal entity, and as such cannot own property on its own. Hence, all property is owned in the name of the trustee – whether an individual trustee or a trustee c…[Read more]

A couple of things you need to check. Does the SMSF allow for this and provided the resultant distributions do not
breach the Rule against Perpetuities.
The rule against perpetuities is a rule against remoteness of vesting ie the property must vest in a person within the perpetuity period. If the rule is breached the distribution would fail.
I…[Read more]

I have sent you a PM.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au