Forum Replies Created
Thanks for the input Ethan and Terry.
I see there would be costs with going corporate trustee at the beginning instead of individual. Surely the costs would be cheaper early stages then down the track once multiple investments would need to be rolled over. Costs of potential bank loan breaks, new contracts and stamp duty on multiple props.
I did a bit of research into land tax.
Trusts start paying above 25k where as individual not until over 250k. And then it seems to be trust land tax edging more and more as the value grows.As for funding the trust, I’m not sure whether we can make the corporate trustee look like it can service loans. Any suggestions as to what this borrowing structure could look like?
What structure would you guys suggest for maximum asset protection?
Hi TerryW,
Thanks for replying.
That’s right, ownership and borrowing structure.We have not sought legal advice yet.
My brother in law is an accountant.
Both him and I will be 50/50 in units.I think the first stage of being individual trustees will have no protection but enable personal income to be used to service borrowing. I guess the protection we want is that if a tenant sues or a bad purchase results in the bank withdrawing the property and costs.
If more than one property is in the trust it may max out our potential to borrow. I guess I’m trying to mimic Steves multiple trusts for multiple properties.
The trust will be funded first with cash and then the plan would be to restructure once equity/income grows.
Once assets role over into the 2nd stage of a corporate trustee (company) then protection would be there.I just don’t see how we can be protected without current assets being the security.
