Forum Replies Created
Hi McHenry
You would be the director of a company. The company is a trustee of a trust and does nothing else. The trust is the entity that holds the asset.
Benifits are
Asset Protection- it will limit your exposers to potential gold diggers. NSW and Qld are the 2nd and 5th most litigated state in the world, per capita.Estate Planning- can eliminate the cost of transfering assets in the event of death.
Tax Planning- income spliting can be of use, to keep the tax as low as possible. Even under 30% in most cases.
Hope this helps
CATA
Asset Protection Specialist
[email protected]I had a quick search and a look on the net..this guy lives in Vanuata?
That is correct. He has just built a beautiful house overlooking the lagoon.
He promotes “Off Shore Investing” and how to do it by investing in overseas Mutual Funds such as the Templeton growth fund,Nicholas Applegate US Growth Fund etc.
He not only promotes it. but does very well himself. Hows $20k over breakfast on a $5k option?
I think the intent is to use Vanuata as a tax haven, mail redirection service etc etc..dodgy
Nothing Dodgy here, only the fear of the unknown. How many people tell you that you are dodgy because “How can you afford all that property?
Endre is a liscenced broker, just not in Australia.I’ve seen Ed Burton talk about Offshore Investing, but dont see the link to this guy?
They co-wrote the book and are good friends. Ed Burton’s link will not work as he is not taking anymore people under his wing. With a troublesome back, I am amazed he is still going at all.
Alwynwin I have sent you a PM and will chase it up for you personally FOR FREE.
I get nothing from Endre (except the 9.2% in the last 12 days legally through offshore managed funds) or Ed.
CATA
Asset Protection Specialist
[email protected]Exellent piont Rikky.
Limiting exposure is often overlooked as some think that if they have a single trust then they have protection. As for the 5 deals per trust, this is common but it is also a personal comfort level. Some have $1mill per trust, some have eack house in a seperate trust.
I like your thinking as to 5 per trust for me personally.
CATA
Asset Protection Specialist
[email protected]It is possibly based on a unit trust as this is the only way to get arround land tax. If it is there is, not much good for Asset Protection as units have a clear unit value.
It maybe a Hybrid Unit Trust.
CATA
Asset Protection Specialist
[email protected]We are just starting in wraps however I am concerned that operating under a new entity would restrict out borrowing capacity.
You will need a garantor for the loans, Beat to speak to a broker that understands these structures. Some don’t but those on this forum seem to.
Is the Ed Chan structure applicable to smaller players or only those at the top of the market ?
Talk to Ed, but there are many others who can set structures in place.
Is it common accounting knowledge or would I need to use Ed’s firm as my accountant ?
I don’t know Ed Chan but if you are using one of his “SPECIAL” trusts then I would use him as an accountant as he knows it best. However I believe the only extra advantange of this trust is the land tax issue, and if you are wraping then is this an issue?
I have never wraped but I think land tax would not be an issue as you do not own the property. Could the wrapers answer this for me?
CATA
Asset Protection Specialist
[email protected]Hi Coasty
I have heard recently that using a hybrid or unit trust to invest in a SFSF will be outlawed by 2009. My source is usually correct. What are your thaughts?
CATA
Asset Protection Specialist
[email protected]Sounds like you do not have the right structure. I am guessing that the property is -ve gear. If you purchase a +ve gear inside the same trust you can offset the -ve.
Or, Maybe consider something else that can produce income to offset the -ve.
Do a search for “Oxygen Funding” who claims that she can get 3% per mth. This could be an option to offset a -ve.
The correct structure can make all the difference, but these might be options for you. If not, when you sell you can use the tax credits to offset CGT.
Hope this helps
CATA
Asset Protection Specialist
[email protected]It sounds like a unit trust to me.
CATA
Asset Protection Specialist
[email protected]Hi Kevin
The company name ismto be on the purchasing document, but the company owns the name only and all traidng should be done through the trust.
Make a minute entry to show that the trustee has purchased the property for the trust.
CATA
Asset Protection Specialist
[email protected]Originally posted by carl_vic:What’s your take on capitalising interest payments using a line of credit for an investment property? Lets say for argument’s sake that the person in question had no non deductable debt and that the rent from the property just hit the LOC as it arrived..
If this is what I am thinking, then the boat has passed on this one as the ATO has made it against the law.
CATA
Asset Protection Specialist
[email protected]I heard a quote that has stayed with me.
“If you love what you are doing, you will never work a day in your life”
CATA
Asset Protection Specialist
[email protected]As Terry has said there are mush better ways to protect your PPOR, but a correct structure would be difficult to comment on without some details on what you have now and what type of investments you are going to buy.
Hybrid trusts are good, but I believe that they are over used. If you are -ve gear then probably. Other than that probably not.
E-mail me if you want to talk about possible structures.
BJ
You can not transfer your house to a trust or your partner. It must be sold, all the relevant taxes would be payable e.g. CGT, stamp duty, legals ect.Hope this helps.
CATA
Asset Protection Specialist
[email protected]I know people with $10k in a SMSF and get a better return than a fund would give them.
CATA
Asset Protection Specialist
[email protected]The Appointor can be changed by executing a Deed
of Amendment. The Deed must be executed by the Trustee and Principal of the Trust.CATA
Asset Protection Specialist
[email protected]Grasshopper’s family sue for pain and suffering from the needless loss of a loved one.
CATA
Asset Protection Specialist
[email protected]Originally posted by bjb007:Option Two: Set up a new company and Unit Trust and purchase as equal unit holders.
This one is better but why not set up another structure consisting of Company trustee and Hybrid Discretionary Trust, with the three of you buying equal number of units.
Just my thaughts
CATA
Asset Protection Specialist
[email protected]Hi Simon
That MF pays a distribution every month?
That is correctOr was it an annual distribution paid in August?
No, it was in one monthEven if the return is 13% every 12 months then it would be incredibly speculative and noone could believe that could be kept up!
It is an offshore managed. No it will not get that every month, but I have made my share. Have a look here: http://www.landausecurities.com
I know Endre personally and he is a great guy.
If you think that you would struggle to get 13% yearly then you must be looking in the wrong places.
GR
Why don’t you send Oxygen Funging a PM. She says she can get 3% per mth return on your money.
CATA
Asset Protection Specialist
[email protected]Hi AussieLad
Welcome to the site.
A brief outline of advantages for owning Assets in a trust,
– Asset Protection, NSW and Qld are the second and fifth most litigated states in the WORLD per capita
-Estate Planning, you can will the trust to someone else without transfer costs.
– Tax Planning, you should not be paying more than 30% in most cases.This could save thousands.
I will PM you.
CATA
Asset Protection Specialist
[email protected]The trading should all be done from the trust.
Invoices are XYZ Pty Ltd as trustee for ABC trust.Keep the company a non-trading company.
Why can’t you buy more units in the trust to get more money into the trust.Hope this helps
CATA
Asset Protection Specialist
[email protected]The trust minutes kept in a plastic sleve with the trustee deed, as any changes must have a record. Nothing special, a minute entry is sufficent.
CATA
Asset Protection Specialist
[email protected]
