Terryw
This is an all to common mistake. There is a difference.
Your idea of the trust taking a morgage over the house is good but if the trust so not making money how do you pay the loan.
Cata

LKGG-88
The statement I made was not absolutely incorrect.
Maybe not quite worded correctly so I will explain again.
Familt Trust- Can list benificaries that are from your family only.
Discretionary Trust- Can list any person or ANY legal entity as a benificiary.
This is the major difference but there are some other minor differences.

Yes you are…[Read more]

He broke his back doing a seminar in sydney.
The info is still flowing as per normal.

GreatPig
Personal circumstances can play a large part ot what structure is best. We are starting to assume to many
factors which will affect which structure to use.
I always say “Never assume, it makes an ass ASS out of U and ME”

Trusts or not depends on personal risk factors.

Cata

zen1
The Home is not included in the trust but there are a few different ways to protect the PPR depending on what you want to do in the future. I am happy to talk to anyone about this but I need some background info and what you plan to do in the future. I also prefer not to explain this in a public fourm as there have been some stratagies um…[Read more]

Not the only way to do things but I have one question “Why was the trustee company not set up at the same time as the trust?”

This is the long way arround things.
The hybrid trust can be a handful and if not done right can have many holes for potential lawsuits.
You can not negative gear through a family trust though.

GreatPig
A “family trust” can only distribute funds to family but a discretionary trust can distribute funds to any benificary eg. family, friends, or another entity like a company, trust or super fund. That would be the major difference but it depends on the trust deed and how flexible it is. I like them to be as flexible as you can get, just in…[Read more]

my thoughts are the same. You own the block now and to transfer it to a company you need to sell it, making it subject to stamp duty and CGT.

If the business is in a trust then another trust can be the benificary.
I couldn’t open the link but I believe this to be true if the trust is flexible enough. I know many who do it, one being a highly regarded accountant who has about 60 IP’s and many businesses.

More great reading “Bullet proof Asset Protection”
by Ed Burton.

I stand corrected
Sorry

coastymike
All the benifits of owning the property in your name
while being protected is my favourite. This can also be used for existing IP’s or any other assets without CGT, stamp duty etc.

You end up with a negative equity on paper(and who will sue you if you have less than nothing) but not actually changing your equity. This will stop most…[Read more]

I hold assets in one trust and trade out of another trust so the trust that would be sued will not hold major assets and should not affect you to much.
There are many ways to make it hard for someone to find your assets.
Colin Wardle
CATA Asset Protection

If you live in australia you will pat tax at the australian tax rate.

Just remember that a trust deed is not the same as a good trust deed. Sometimes a more expensive price can be better in the long run.
A good trust lawyer can break into most trusts in about 5 minutes. I have seen it done.
A family trust can also restrict you in a lot of ways. Consider a discretionary trust and if the person you deal with doesn’t…[Read more]

Eleven
Why a family trust? There are many advantages ofa discretionary trust that are more flexible than a family trust.
You must specify at lease onn benificary for the trust, but with a good trust deed you can change this at any time quite easily.
If you use the trustee company to buy the property you may as well buy it in your name. You should…[Read more]

If you use a discretionary trust the benificaries can be any other entity, including a company or other trust. Also if you distribute funds to a minor(under 18) you will be taxed at 66% from dollar 1(no tax free threshold).
There ary many personal circumstances that should be considered and I recommend talking to an expert before doing…[Read more]

coastymike
Some valid points, one size never fits all but you can change the size and shape of a discretionary trust sooooo many ways.

Setting up any trust HAS TO BE FOR ASSET PROTEcTION( as far as ASIC is concerned)

Negative gearing can be used to great affect using a discetionary trust. You can quite easily protect assets outside the trust, in…[Read more]

Hybrid trusts are high in maintance and if not used correctly are worthless.

Unit trusts are far to easy to workout how much each unit is worth eg trust has $1 000 000 asset. 2 unit holders are worth $500 000 each.

I use discreationary trusts(not family trusts). The asset protection is equal to ANY other trust and far more flexible( and easy to…[Read more]