Forum Replies Created
A hybrid trust is a combination of discretionary and unit trusts. If it has no units then it will be a discretionary trust only.
CATA
You have done some research I see Gordon.
Something to think about, PPOR in my name, gift funds to trust for deposit on IP. Trust borrows funds for IP and takes security over PPOR as well as IP. This also negates the 6/24 month bankruptcy law.
2 houses, 2 loans, lots of security for bank.CATA
Eleven
I think the ATO dosen’t like anything that saves taxpayers from paying tax.
Hybrid trusts are good but my preference is a Discertionary Trust.
I believe that the hybrid trust is used alot when it is not needed. My opinion only.
Different circumstances for different trusts, but I am a big fan of discretionary trusts.
Cata
Asset Protection Specialist
CATA Asset ProtectionTerryw
If a trust has a mortgage(loan agreement) over a property in my name(for example) and I was sued, the trust would recieve monies owing before any payment to a litigant. This means if anyone sues me, the trust would be payed first.
Maximising your loans reduce your risk but also limit you for future investments.
You can borrow from the trust but the trust has to have money or access to money to lend. These are all issues that must be tackled for this stratagies to work.
Not one to brag (well sometimes) but if someone is happy with the current financial position they are in, this has been a stratagie that I have used to great effect. APPEARING to be pennyless can have its advantages.CATA
Asset Protection Specialist
CATA Asset ProtectionDid you know that the reserve bank in a private bank which lends money to the government. They are not run by the government
This sounds a bit dodgey, not something I would do.
The loss has to be real or the ATO might see it as tax avoidence.
CataTerryw
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.
CataLKGG-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 able to call a discreationary trust a “Family Trust” if you wish but this is different from a family trust.
As for the rest of your review, it seems to be correct.
I stand by my statement. The way I read your comments is that you are refering to a discreationary trust as a family trust.This is not correct. Other than that I believe it to be correct.
CATAHe 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 lets say “borrowed” and I am keen for this not to be one of them.But some food for thaught, it involves buying another IP or using some inventive thinking with morgages and trusts.
Send me an e-mail if you want to talk.
Look forward to it.
CataNot 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 cast I need to change anything I can do it quickly.As for your second question, you can protect assets that are outside the trust structure and in your own name, so you get the full effect of having the IP in your name. Another benifit is that you can protect existing assets without selling them into the trust.
Colin Wardle
Asset Protection Specialist
CATA Asset Protectionmy 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
Sorrycoastymike
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 law suits and a few little tricks will stop all but the lawyers that will stop at nothing(even though this will be a very expensive for them)
The IP title is still in your name so you get all those benifits. I LOVE IT.
Colin Wardle
Asset Protection Specialist
CATA Asset Protection
[email protected]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 ProtectionIf you live in australia you will pat tax at the australian tax rate.
