Hi, I’m a first time poster but a long time reader. I have been self educating myself for the past few months by reading Steve’s book, wealthguardian and forum archives to name a few(total info overload). Now I want to get the ball rolling and set up a trust with corp trustee but am uncertain as to who should be who. I run a small business and my partner works for a large company, so the main reason we want to set up the trust is asset protection for myself as I am at a greater risk. My question is as follows, Where should the person with the greater risk be in the structure of a trust,or is it all the same.
Any advice would be much appreciated.Ben
Hey There Benedict,
I think you need to get some advisor to give you good Tax and accounting advice …. based on your current situation and your future plans must be clear also.
Cheers
Try going to the Vendor Financing (Wraps) association website for some accountant contacts that may better understand your requirement
Cheers,
Kiwi
[:p]Thanks Kiwi,
I want to get the structure part correct from the start.Will check out the ‘wraps’ association website.
Thanks again for your advice.Cheers Ben
I am not an accountant, but would think it won’t really matter. One of you will be director of the company, which is not trading. If the trustee is sued, it would be the company at risk. the trustee could then be dismissed by the appointer and new one appointed. so the trust assets would be safe. Now the director of the trustee company may be able to be sued personally if they have made some bad decisions, so their personal assets may be at risk.
But the director getting sued for other reasons probably will not impact on the trust assets. the trustee company will not own anything and even if this company can be attacked by creditors, the appointer of the trust can just appoint a new trustee.
Please seek qualified advice.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Benedict, in the trust structure it doesn’t matter.
However, the trustee would best be the person who is less ‘at risk’ which sounds like it would be your partner. Trustee as an individual, or as a sole director of a company (preferred by most).
Cheers
MelHi there, I have been considering obtaining Wealth Creator. before doing so I have been checkling out some of these forum posts. Seems a Trust structure of one sort or another is recommended. However, this being the case, I have only ever seen discussions where the scenario is you are married/have a family, so income can be distributed to lower income earning family members. I am single, no family. Is it worth my while obtaining WC in this situation ?
BHi B
Do you have no siblings, no living parents?
I too am single, but have included (as is fairly standard) in my trust my parents, siblings and their spouses and children – any future spouse(s) (one at a time of course[biggrin]) of them or me, and any future children.
Companies I am director (and/or shareholder?) and even trusts are also beneficiaries, so there is a lot of flexibility.
If you never plan on having a spouse or kids, maybe it won’t matter? If you plan on purchasing many properties, even having the option of distributing to a company at 30% is better than always having to pay 48.5% tax.
Would recommend a read of Trust Magic or Wealth Guardian (is that what you meant instead of Wealth Creator?)
Cheers
MelThnx for that Mel. Will look into it a bit more. certainly hope not to be single forever [rolleyesanim]. More of a share trader, but do have an investment unit and my home.
B
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