Interesting.

The house would have to be held in either a unit trust(I would not do this) or a hybrid, with units held by another trust eg. discretionary or hybrid trust. I can’t see the benefit (you can have a company as a beneficiary and cap your tax at 30% in most cases)

What was the issue being discussed?[hmm]

CATA
Asset Protection…[Read more]

Hi P_I

I would not agree with this either as it depends on the deeds and what you want them to do. Sometimes spending a little more will allow you to have more options in the future.
A unit trust IMOP is no good for asset protection as the units have a dollar value.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Not a company and trust, just a trust. Charging $2500 – $3000 for just a trust is to much.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by redwing:

Individuals, partnerships and Companies are all legal entities a Trust I believe is not; all liability falls on the trustee, however, I’ve seen contrary information that says a Trust ‘is’ a legal entity?

A trust is a legal entity and if all requirements ae met, can live forever just like a company. Liab…[Read more]

To buy units in the trust I think.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

A trust can be sued but if you have different trusts for property, investments and business this limits liability. The combinations are limitless. Some people like one investment per trust. I know of aprox 60 for one couple.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

A different company trustee will keep the investments completely seperate and unrelated. I believe this to be the best.

I have heard of a trust being sued, then trying to get through the company trustee, into a different trust. Unsuccessful I believe but will be tried again one day.

Maybe 2-5 trusts per company, it is really up to your personal…[Read more]

Hi Herselman

I think the question isn’t financing through a HDT but one for a finance broker. I do not understand why your wife being guarantor is a problem.

I see the problem not in the trust but with the lender.

Maybe a broker can help.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Hi Lupus
If you give someone(or company or trust) something, is it yours anymore?
And if there is a legal document to back you, who can argue? Unless it happened after the litigation process has begun.

There is a “6/24 month bankruptcy law” which means that the trust can be broken into in the first 6 mths and possibly broken into in the next…[Read more]

This is one way to do it in a Hybrid Trust, Redwing.
But remember that if you own units in a Hybrid trust that is an asset that you could be clawed back.

As you know, I prefer a discretionary trust for myself ( also, a hybrid trust that has not issued any units is treated like a discretionary trust until it does issue units)

CATA
Asset…[Read more]

Every partnership I deal with of more than 2 Directors or partners I find that sooner or later they have disagreements about which direction to take, usually resulting in a breakdown in the company or partnership.

Make sure you all want to go in the same direction.

That said, I would consider a Partnership of trusts. This way you could make a…[Read more]

Originally posted by lupus1704:

Now, if say I had a trust and had to contribute $ 20K as deposit for a property into the trust, when it comes down to litigation, how does the law view my initial contribution to said trust? Is it still my asset, even though I have contributed it to the trust? Or is it considered a contribution and no longer mine…[Read more]

In addition, lets imagine that the trust is new, and does not have any financials to prove that it can service the loan on it’s own. I’m assuming that to get the loan I would have to go guarantor on the loan, is this correct?

The trustee has to be guarantor or if there is a company trustee then the director needs to be guarantor

Can a low…[Read more]

Hi carl_vic

As far as I am aware there is no impediment to a trust being a beneficiary
of another trust and vice-versa, provided the resultant distributions do not
breach the Rule against Perpetuities.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

There is one in clayfield, brisbane that we went to and were told by them that one property per year was not realistic. This is where I left and thought, that contradicts what Margret Lomas says in her books. I did not use them.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by grossrealisation:
Hi Cata
Are you in sydney I would like to talk about unit trust and assett protection for my trusts.
If yes to above then we may talk at the meeting on sept 11

here to help

Hi GR

I am in Brisbane and will be on a plane on sept 11. I know good day to fly but am going to see a man overseas to talk about…[Read more]

Quote:
Originally posted by voigtstr

Can I still have a trust structure set up to buy the PPOR house if the intention is for it to be an investment 6 months or more down the track.

Yes, a trust can own it and you can rent it of the trust, then when you move out a new tenant moves in. I am unsure of FHOG though. Don’t think so.

What kind of…[Read more]

Hi GR

Just remember that american muscle cars have a problem with brakes and handling.
Make sure you know your investment vehicle well.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by Dazzling:

I reckon if you sat down and did a cost benefit analysis w.r.t. insuring your IP’s, the only event worth insuring is the full on fire scenario, and even then they’ll try their utmost to wriggle out of it.

Insurance companies are in it to make returns for shareholders, not to make life easy[biggrin]

They always…[Read more]

You could rent a own property from a discretionary or hybrid trust, but I would use a RE manager, just to keep it at arms length. I would not sell my POPR to a trust then rent it back as this could be seen as tax avoidence, but buying a new house is different I believe.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au