As far as I am aware there is no problem, provided the resultant distributions do not
breach the Rule against Perpetuities.

The rule against perpetuities is a rule against remoteness of vesting. If the rule is breached the distribution would fail.

The rule against perpetuities is a very complicated area of law.

CATA
Asset Protection…[Read more]

Originally posted by tom1000000:

Eg it is apparently better to have a company as a trustee, not yourself…. why is this so?

If a trust is controlled by a person as a trustee, even though that person does not own any part of the trust, if any lawsuits are taken out, The trustee(ie you) can be held accountable for the actoins of the trust and…[Read more]

How old are you?

Remember that you will not be able to get until you are 55(untill they change the law anyway)

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Does that mean that as a trustee I can divert the income to a non unit holder?

The trust deeds that I use, Yes if the trustee wants to. You will have to check the deed of the trust you purchase as some differ.

would I still be allowed to claim the interest back on my tax return (as a unit holder?)

This comes back to what the money is used…[Read more]

Profit distribution is at the Absolute Discretion of the trustee in a hybrid trust.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by tlnsrq:
I

1- Is it worth considering a Hybrid Trust for the purpose of investing in shares?

Yes

2- If I borrow money (100K) to buy units in the Hybrid trust (100 units) and the money is invested in property or shares, then ALL income produced have to be distributed back to me. Can somebody confirm that?

At the absolute…[Read more]

Why limit yourself to Sydney only?
I am in Brisbane and my accountant is in Melbourne.
And if you are going to an accountant for structures, ask them what is the difference between a family trust and discretionary trust?
Most will not know the diffirence(and I might be offending some accountants but I do not mean to) but accountants know…[Read more]

An offshore trustee can be done but will need an offshore trust and an offshore accountant also.
Offshore beneficiaries I can not see a problem. I have never done it and would need to look further before I did.
Intresting question.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

You can get a bathtub that is larger at one end, just for shower/baths. The one I have used was quite big. It also had a glass screen(not a curtain Dr X) and IMOP looked OK.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

I would at least look into the possibility of using a company/trust structure as you would have a high turn over of what I call low end tenants, but there are other things to consider.
What is your business/profession?
What other assets you have?
Any other real estate?
And one I like to ask(some may not see the relevance) How do you cross the…[Read more]

Originally posted by Dr.X:

My brother got in contact with the appointor and asked him to remove him (my brother) as trustee and appoint either a company or himself (the appointor). He said he would!

How can we check if he has or how can the trustee legally remove himself if the appontor objects?

Think about a company trustee with both…[Read more]

Glad to be a help.
I am currently looking into the possiblity of changing appointers’. I will let you know what I find.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by Dr.X:
It is a discretionary trust, without a corporate trustee. My brother IS the trustee of the trust!!!!!

I have not seen this before as all our trusts have company trustees.

I know the appointor can remove the trustee and appoint another trustee. This is what I dont like.

Also, what happens in the case of a legal…[Read more]

Hi Dr X
I will assume that there is a company trustee and he is the director.
From my understanding the trustee is responsible for what the trust does.

From what I have read, your brother is possibly in the best position if the partnership goes sour.
Your brothers friend is the appointer who can only make suggestions to the trustee. The appointer…[Read more]

Agreed terry, possibly a hybrid trust.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

This is the legal opinion of the barrister that I use.

It is a semantic division which the law adopts: The trustee owns the trust
assets in name only – the benefit of those assets (enjoyment of them) is the
sole exclusive right of the beneficiaries of the trust. Hence, if the
trustee is sued in a personal capacity (unrelated to management of…[Read more]

30CH

I have done some research(not on google) and have found that I was incorrect. Thank you for pointing it out.[withstupid]

As for the appointer, my understanding is that the appointer can make suggestions to the trustee, but the trustee does not have to listen. The only thing the appointer can do to override the trustee is to wind up the…[Read more]

Hi Wylie

I have not heard anything, but if it settled out of court the details are not released.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Yeah interesting read; but Harry’s dow 40,000 is running out of time eh?

[/quote]

He has untill 2009/2010. I guess time will tell.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

If the trustee is the legal owner eg. a company, then why do we set up a trust at all as the trust would be unnecessary? And why does the trustee not pay expenses or recieve income unless it is a beneficary(not something I would do)?

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au