Forum Replies Created
What is the value of asset protection to an investor?
The value is not to loose everything you own if you are sued. NSW is the 2nd most litigated state in the world followed by Qld in 5th, on a per capita basis. Also, if you use these company/trust structures the major reason for them must be for Asset Protection or the ATO might see it as tax avoidance. Tax benefits are a secondary consideration(of course!).
CATA
Asset Protection Specialist
[email protected]Eleven
GP is on the right track. I have never seen a trust as a trustee, and am weary of this. Your idea seems very complicated. Just remember the more complicated a trust structure is, the more likely something could go wrong and you won’t know unless someone sues you. Possibly cost alot in accounting fees also.
Ask your accountant if they protect their personal assets and if so how. They should have no hesitation in answering this.
CATA
Asset Protection Specialist
[email protected]Sorry for your loss jkmt, Sometimes life be hard.
I like to involve my kids in our investing as much as I can. My 4 year old is still to young to understand but my 8 year old is starting to understand some basic principles. I am hoping that they will learn as they grow and know how to handle money and investments when they grow up.
CATA
Asset Protection Specialist
[email protected]The only thing in the trust is assets.
The trustee (I believe) should be a $2 company with no trading history. The trustee does not own the asset but is in control what happens in the trust.The benificary of a trust is not the owner, it can receive profits/losses of the trust(depending on the type of trust)
A trust is a separate legal entity that can live for ever as long as all legal requirements are met. Assets owned by a trust are separated from you and therefore if sued you are not liableCATA
Asset Protection Specialist
[email protected]I do not see the difference as you can not access the money until settlement anyway, at wich time you get all the monies owing.
CATA
Asset Protection Specialist
[email protected]Dr X
Maybe the first property aimed at capital gains so you can keep investing. I’m with you though, positive or at least netural gear.
How many negative gear IP’s can you have?
Then compare with positive?CATA
Asset Protection Specialist
[email protected]Terryw
Sorry for the delay, I missed your reply.
The main difference is getting mortgage 1 up as high as possible
for a deposit on house 2, purchased in a trust using seperate loans. This has some limitations, as property prices keep growing the equity in property 1 in exposed, also reduces deductions for intrest.
A good structure though as you can end up(on paper only) having a negative equity.CATA
Asset Protection Specialist
[email protected]Good post Dr.X.
As for mt post, I changed it and am sorry. Even though this is my personal opinion only. It was also shut down by ASIC, unless I have my info incorect.
How do you guys stay up so late or perhaps early?
CATA
Asset Protection Specialist
[email protected], if something goes wrong for example the tenant hurts himself and sues me, would all my personal belongings under threat? Is this possible?
This is not only possible, it happens. Using a trust with a company as trustee is the best way to guard against litigation. Insurance is important but does not always cover you for what you need.
Dr X seems to know the basics but make sure the advice you get is from someone who protects his/her personal assets. This will ensure that they practice what they preach.
CATA
Asset Protection Specialist
[email protected]I have a friend who lost $5k in a scam. I don’t know much about it but it was a while ago now. Something about starting a bank that will lend on anything positive geared, but not worring about your personal finances.
My friends in-laws also got taken for $25k, but they are not to bright.
If it smells like a scam, looks like a scam then it probably is a scam.CATA
Asset Protection Specialist
[email protected]This is something I have never heard of and if it does work the problem would be (as per Terry) getting the money, unless you are over 55.Also remembering that a super fund can not borrow.
Without doing more reserch, I think this sounds strange also.A side point, the trustee is responsible for what happens in the trust, that may make it liable for what happens in the trust. This may open the super fund up for lawsuits.
If this sounds so good why are more people not doing it?
CATA
Asset Protection Specialist
[email protected]All vaild pionts to consider
CATA
Asset Protection Specialist
[email protected]Hi Terry
He was walking on to the stage to do a sydney seminar and fell about 20 months ago. He was more worried about the people who came to see him than his back. He refunded all money paid to him for the seminar. His back still gives him a lot of trouble and it probably will never be right.CATA
Asset Protection Specialist
[email protected]Hi guys,
Great topic that I think most people who read or reply on this site will have come accross at some point.
I have friends and family who I talk money with and I have friends and family I talk sex drugs and rock & roll with. Sometimes the boundries cross and I find that if people do not understand what you are doing then they are quick to judge you. Water off a ducks back I say.SHOW ME THE MONEY
CATA
Asset Protection Specialist
[email protected]Qld007
It was an idea to look into. I know someone who purchased a business this way, but I have no expierence with a Novation Agreement myself.
Some more info on an “Assignment Letter” would be great if you could?
ThanksCATA
Asset Protection Specialist
[email protected]Quote:Originally posted by austini:Hi Cata,
If my understanding is correct once I gift funds to the trust I would have to pay tax on these funds should I require them to be permanently returned to me at some time in the future. Of course I suppose the trust could loan the funds back to me as an interest free loan. This is providing that the Gov’t doesn’t legislate later down the track to enforce formal loan arrangements.
Hi Gordon
If you gift funds to a trust which you are a benificary of, the trust can distribute funds as the trustee wants. So you can get money as a benificary of the trust.
As for the loan from the trust,what if the loan aggrement states that repayments are only made when the trust calls for them? How can the govt. enforce loan repayments if the govt. is not part of the legal contract?CATA
Asset Protection Specialist
[email protected]I think I like the first explination Terry.
Only if the trust is already set in place will this work. If you have a trustee company then the person next door will not know anyway as the contract will have the companys name on it.
CATA
Asset Protection Specialist
[email protected]Terryw
Settling a trust is not esential within 28 days but it is something I do to eliminate any future possible questions. Like the cheque, it’s to ensure you can have some proof of the trust being settled(no one I know has a problem with keeping $10 only in the a/c). The $10 note can be misplaced or fall off the deed etc and if someone really wants to be picky, stapeling a bill could be seen as damaging government property. Unlikely, I know.
I also deal with accountants and legal people who are possibly the best in the country.There is many opinions on this subject and mine is one of them. All I can say is the closest someone has come to challenging one of these trusts is asking to view the deed(something they are entitled to do) and then handing the deed back, then droping the case.
Opinions vary on this subject.
CATA
Asset Protection Specialist
[email protected]Quote:Originally posted by Mortgage Hunter:No advertising here Cata.
Sorry Mortgage Hunter. I was not suggesting to advertise here, but maybe there is another site simmilar to this one which allows advertising.
Sorry for the misunderstanding.
CATA
Asset Protection Specialist
[email protected]This seems to be a topic that people will never agree on. Some people go to seminars and some do not. Some like them, some do not.
I only go to seminars that I think are worthwhile, take in what I think I can use and discard the rest. I also never go to seminars that sell anything but info. I purchased a set of steve’s cd’s a few years ago and they have made me a lot of money.
I think obiwan has hit the nail on the head.”Decide for yourself”CATA
Asset Protection Specialist
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