Forum Replies Created
How about $50 on a $137k IP.
CATA
Asset Protection Specialist
[email protected]I do not know much about this Property Investor Trust, but if you have one IP +ve $50/week, and one IP -ve $50/wk, then this trust would be netural.
It is common and not so difficult to overcome but everyone’s position is different.
CATA
Asset Protection Specialist
[email protected]As little as they will accept as I want to keep my money in my pocket. It is up to you and the vendor to agree.
I do not understand the issue as the money can’t be accessed untill settlemant anyway.
CATA
Asset Protection Specialist
[email protected]It is much better to have structures in place first, but I will answer with a question for you to think about.
If you have a structure in place, then why do you need “and/or nominee” on the contract at all?
Why not just put the entity name on the contract?
CATA
Asset Protection Specialist
[email protected]Dobby
Which one do you want to use, A Family Trust or a Discretionary Trust?
If your accountant thinks that they are the same, get a new accountant!
I agree with Michael. Structures need to be flexible and cover as many options as possible, without being over complex.
CATA
Asset Protection Specialist
[email protected]I like to but and hold, untill something better comes along. At which time I will consider the options.
CATA
Asset Protection Specialist
[email protected]Hi Len
I would have to disagree strongly.
The trustee is responsible for anything that happens inside the trust, and that brings liability issues. If a company is not required as trustee, then why have they been used for years?
My thaughts are that they are trying to keep costs down as a mutiple trust structure with a corporate trustee is getting expensive.
CATA
Asset Protection Specialist
[email protected]It is best to have structures in place first, so this would be better. It would be up to the seller if you can put “and or nominie” on the contract as they need to agree.
Make sure that the trust is settled before settlement of the house, I like it this way.
CATA
Asset Protection Specialist
[email protected]This is the rumor that I am hearing also, and what I have been saying for a while. But it is just an opinion.
I would question the price as a combination of trusts could be expensive.
CATA
Asset Protection Specialist
[email protected]Agreed Graeme
Both are gret guys that have helped me alot.
It is a beautifil house in Vanuatu and we have been there also, intresting place to find.Alynwin
I guess you do not want someone to follow up your problem with Endre himself, for free. If you do please e-mail me as it will be worth your time.
CATA
Asset Protection Specialist
[email protected]I noticed that Asset Protection was not mentioned.
For me, all comments point to a unit trust of some sort. Maybe a Hybrid unit trust as I said before. All I can say is that if you are going with this Property Investor Trust, then ask Ed Chan about maintence costs as he knows this structure best(if it is a special trust that is, I still have unanswered questions).
Just my opinion
CATA
Asset Protection Specialist
[email protected]Originally posted by Ron Burgundy:He suggested a hybrid trust for its flexibility and quoted me about $2k
1. is this a suitable structure for a young investor starting out?Depends on what you ae doing. It has it’s good points and bad.
2. is the price reasonable?
If it includes a corporate trustee, that is a bit cheap. Ask what he charges for yearly fees. Some have small set uo fees with large yearly fees as a back end cost to make their money.
3. if not, can anyone recommend an accountant or solicitor in Sydney that would advise me better and charge me fairly.
E-mail me if you want.
4. Is it true that you are inellible for land tax exemptions when you own prop. through a trust.
Unit trusts are land tax exempt I believe but the rest you are stuck with the bill.
5. do you pay a lot of yearly fees or just a set up fee?
There will be a set up cost, but the yearly running costs will depent on the accountant you use and what is does.
Hope this helps
CATA
Asset Protection Specialist
[email protected]The choice is yours alone McHenry. Structure or not, both advantages and disadvantages.
CATA
Asset Protection Specialist
[email protected]Originally posted by Cabo Wabo:My question is “would the court nullify a trust only if there were kids involved? or is it that trusts are just vulnerable, period.”
A trust is not unbeatable. The Australian Family Law Court will look through any “Australian” structure, kids or not, married or defacto.
They will limit liability. It is all smoke and mirrors at the end of the day, the money has to land somewhere, the trust makes it difficult and possibly expensive to find for any litigant.
“Does it make any difference if the trustee is an individual or a pty?” “Is it safer under a corporate trustee?”
A trustee is liable for anything that happens in the trust. Hence the corporate trustee (a $2 company) is used to keep your personal Assets a step further away. So yes it is safer under a corporate trustee with you as director.
Are trusts secure in the case of a defacto relationship?
I believe not.
Hope this helps
CATA
Asset Protection Specialist
[email protected]All this must be taken into account when any structuring is to be done. It is nothing new, but my only question is the land tax issue as I can only see that from a unit trust(maybe I am missing something as I have not put to much time into Ed Chan’s trust).
Everything that you have mentioned can be achieved without including a unit trust.
CATA
Asset Protection Specialist
[email protected]Three different opinions are not always three right or wrong. Different trusts and structures for different purposes. I look at it from an Asset Protection point of view.
CATA
Asset Protection Specialist
[email protected]The loss can be deducted of the capital gain to reduce CGT( if there is a gain) otherwise it is lost.
Costs to transfer would possbbly include selling the property to another trust so something like this
CGT (if any)
Stamp Duty (possibly)
set up of new trust
maybe some other legalsIn other words, alot of money. This would be a last resort for me.
CATA
Asset Protection Specialist
[email protected]The trust must do all of the trading if you want asset portection.
As for the loans you will have to speak to a mortgage broker for that one as I am not in the know about that one.
CATA
Asset Protection Specialist
[email protected]From my “To early Sunday morning thaughts”
The trust that Freedom3 has is a discretionary trust, and hence the problem of not getting the -ve out of the trust. Not a Hybrid Discretionary Trust. There is no units in a discretionary trust to buy.
Other than offsetting the -ve with something, there would be restructuring into a HDT but this would be an expensive plan.
I guess there is always the option of getting out of the deal(selling) but that will depend on the position Freedom is in.
CATA
Asset Protection Specialist
[email protected]Fair enough Kp.
Forgive me for being sceptical but I think I know where he is comming form (without talking to him so I might be wrong).
CATA
Asset Protection Specialist
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