I recently posted a structure that I was attempting to implement. I thought I would post updates to that structure as they occur or before they occur so I could get opinions on whether various moves were good or bad or if they will be good or bad.
Also, ideas would be most welcome before I pay out the dollars as I undertake various things.
I registered the Trustee Company today and the Discretionary Trust is being processed. Once the Trust is in place, I intend moving all shares from my Trading Companies to be owned by the Trust.
To simplify it…
* I am sole director and share holder of Trustee Company.
* Trustee Company administers the Trust
* I am sole director of Trading Company 1
* Trust will be sole share holder of Trading Company 1
* I am sole director of Trading Company 2
* Trust will be sole share holder of Trading Company 2Unfortunately, I have some assets held by Trading Company 1 and Trading Company 2 which I will leave where they are. I consider this a learning experience as they would have been better served in a Trust.
All future purchases of assets will be purchased under the Trust.
Basically, I own nothing now except a personal bank account (with minimum funds left in it), one credit card (with minimal limit for personal expenditure), whatever income I decide to draw from the trading companies (which will be minimal) and my personal items (which no-one would want).
I think this is more than enough protection for all assets.
I look forward to hearing your comments.
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The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Sorry to be so slo,
but can you put that into a table or something? I’m getting my trusts confused with the trustees share holding that you direct.As I am starting out on the road to being filthy rich, I need to/ and have been looking at some form of trust structure. Our family had two trusts (Investment trust and Family trust), there was also a pty ltd that was the trustee to the family trust trading as XYZ. My father is the trustee of the investment trust and ownes the premises which XYZ was renting. This whole thing is set up to minimised taxation (or so the accountant told us – he ain’t with us no-more!).
Is that what you are doing?Cheers
C@34
Sounds very much like what I am doing except I am using a single Trust.
I would have put up a table but Admin took away the ability to link through to tables etc when certain members complained about my previous signature being too colourful.
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The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Hello Rob
Sounds like a good setup. What about a unit trust as well? The unit trust would buy the property (the trustee actually) and the units for the unit trust would be the discretionary trust. That why you will be able to transfer property owned by the unit trust without paying stamp duty, under certain circumstances.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
I asked the accountant about hybrid and unit trusts. They do not suit my purpose at the moment.
He suggested unit trusts are predominantly good for when dealing with partners in investments. Likewise, this applied to hybrids.
A group of friends and acquaintances are setting up a buying group in the next few weeks. We will use a unit trust for that group and my units will be owned by my discretionary trust.
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The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Hi Rob
I just watched a video of Ian Daily talking at a seimnar. He is some big wig at ITP. He was saying something about trusts not being such a great idea any more. Something about the govt changing the rules, ‘cos they don’t like not having control over trusts as they come under common law.
Ian seems to think that the govt plans will make trusts lots of work and hard to manage. He didn’t really go into much detail, but when he mentioned it, I thought of you and your new structure. Might be worth checking out.
Cheers
Kez
Thanks Kez. I think that is in reference to the tax treatment of trusts. I am not all that fussed as my tax is capped out at a maximum 30% regardless unless they change company tax rates. My main thing is asset protection. Saving on tax is a bonus.
Thanks for the info though. I am sure the accountant will keep me informed.
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[withstupid]
The forumite formally known as Big Rob
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