Be careful with this type of partnership with your superfund. Learn the rules and follow them, IMOP don’t even try to bend them (which is what you may be doing)

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Coastymike and Redwing have hit the nail on the head.
There is nothing saying that you must use a trust or a company.
My personal opinion is that if you decide to purchase in your own name, then you are leaving your self exposed to a range of possible problems eg. lawsuits, tax ect.

But do your own due dilligence and make an informed decision for…[Read more]

It really depends on what you are trying to achieve. If it is Asset Protection then there is some other options rather than selling your IP’s to the trust.
Is the structure a Hybrid or Unit trust?
Is there a corporate trustee?

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Your banker is incorrect.

You will be selling the properties to the trust, it will not matter if it is your trust or not you will need to pay CGT, stamp duty as well as set up costs for the structuring.

What state are you in?
Why do you want to sell IP’s to the trust?
There could be a cheaper option for you.

CATA
Asset Protection…[Read more]

What is your investment stratagy Carlin?
You should get some better answers if you share this info. Your investments will determin your structure to some extent.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

I would also look into changing the apointer. Get the couple to speak to the accountant and find out the facts.

The only stumbling block would be if they do not want to give up there position in the structure, but it may be the case that 14 years ago it was the norm. As Terry said 14 years is a long time.

CATA
Asset Protection…[Read more]

What is the local demographic?

Maybe a wine celler if the local area is of that demographic.
A large pantry, Storage ect. Could you split it for a multi purpose room?

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

To take it a step further, borrow in your name through LOC, gift money to trust which then lends the money back to you to put back on the loan. The affect is a negative equity on paper but in reality your position has not changed.

Through some creative loan agrements with your trust it can be arranged that there is intrest accrued but no…[Read more]

It goes to show that you must understand the structure. This is of the utmost importance.

I can’t imaging how I would feel in that situation. The couple could sue but would be up for legal costs (if they could afford it). I would ask the accountant to “PLEASE EXPLAIN”.

If there was not a good eplaination I would (I will edit this…[Read more]

I like the way you think Dr X. If more people were like you this world would be great.The win/win you created I think is ideal.
Kudos to you.
Maybe you could take something from this for your new business name.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

There is no one size fits all for trusts, so it will depend on what investment stratagie you are using as to which trust.

Hybrid trusts are great but only if the people who are advising you are also great. I have seen loans from the trust instead of the person, accounting mistakes are also common for those who think they can do it. If using a…[Read more]

Anita,
What extent are the developments?
Reno, split block, extensoins ect.

Resettling for changes like the ones you want is something that I would be reluctant to do. It is more than likely to be more expensive to resettle than restructure. If the amendments are not correct the structure may be worthless.

But all is not lost, you have 2 other…[Read more]

I agree with Terry

Don’t worry to much. You will get tax credits for the losses and when the trust makes a profit you can use the credits.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Coastymike

Your dig at my post is justified. Having re-read my post I know what you are saying ang you are correct. I understand that a trusts assets can be clawed back through various proceedures.

It can also be the case where the trustee company is sued and the director is held personally liable. The last one I heard of was claiming that the…[Read more]

Residex is a great resourse for suburb searching. Can’t remember the phone number off hand. Web address is http://www.residex.com.au

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Insurance on the property, not the contents as they are not yours (unless you are renting it furnished).

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Originally posted by Terryw:

And the company does not have to be trustee for you to distribute to. In fact, it may be better not to for asset protection reasons. What if you build up a substantial amount and the trust is sued?

The trustee company should be a non trading company. Not only if the trust is sued but the company can be sued also,…[Read more]

I train an econimics teacher that says she dosen’t do numbers!

This would be knowledge without power IMOP.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Could not have said it better myself Redwing.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

If you set up a hybrid trust to start with, then issue no Special Income Units, the trust will act as a discretionary trust untill such time as units are issued.

Then it becomes a hybrid trust.
And the reverse also, if the hybrid trust buys back all units that were issued then it effectivly becomes a discretionary trust until more units are…[Read more]