Hi there, my question has to do with the issue of migitating risk:What if someone were to have an injury on one of my investment properies- is
having insurance as my only line of defence against other people trying to take my personal assets really enough? After all, insurance
companies tend to have a way of getting out of paying for damages, injuries and so
forth. Furthermore, if I was to set up LLC type cooperations to further protect myself, and say owned 100 properties, how many would I need to set
up and what would the tax implications be?If someone could please help me answer these questions I would be most appreciative, as they have been a large issue in my decision making.
Thanks Heaps.
Arthur. K
You can get public liability insurance to cover personal injury lawsuits. It usually comes under Landlord insurance. Rentcover is a good insurance company to work with.
In terms of companies. A LLC is a limited liability corporation, it used in the US, in Australia, we have companies though, which are basically a similar idea/concept.
We tend to use trusts rather than comapnies, because we can get a 50% discount of any CGT, when we sell an asset. To protect yourself further we usually have a corporate trustee.
(Unless you are doing wraps, trhen a company structure will surfice).Rgds.
Lucifer_au
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