All Topics / Legal & Accounting / discretionary trusts
I often read property investors who advise setting up some kind of trust. I’ve heard of discretionary trusts, hybrid trusts, family trusts etc. I’ve also heard of Ed Burton and his advice to have a trust for asset protection and tax savings.
I’m reluctant to buy any investment properties until I’ve set up the right structure.Any advice most welcome. I’m taxed in the highest income bracket, so any savings here through having the correct structure are also most welcome.
Dale Gatherum Goss’s Trust Magic is a great source of information on trusts. Will answer many of your questions. Easy to read and costs around $80
He is based in melbourne – http://www.gatherumgoss.com
Ed Burton is offering a free DVD and CD etc on trusts at the moment. One of my clients has given me a copy, not sure where you can get them, but it would be worthwhile looking at even if you do not use his services.
Terryw
Discover Home Loans
Mortgage Broker
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
many thanks for the advice. I actually did get hold of Ed Burton’s freebie DVD – very interesting.
Will also get hold of a copy of “Trust Magic” – my learning curve is steep.
regards,
CarlinEd Burton does seem to charge a lot for his trusts.
Terryw
Discover Home Loans
Mortgage Broker
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
Carlin
Which state are you from? If NSW I can recommend speaking to an accountant Edward Chan from Chan & Naylor (www.chan-naylor.com.au).
I, too, was/am like you not wanting to start investing until I had the right structure in place. My husband is in the highest income bracket but myself in the lowest. We are in the process of setting up a Hybrid Family Trust to get the most tax savings. Edward can help you with your decision.
Hope this helps
Shelleythanks Shelley. I’m in SA, but I will still give Edward a call because he may do business here.
regards,
CarlinHi Terryw!
I am not sure I would agree that Ed Burton charges a lot for his trusts. You could probably buy one from ebay for $39, but would you?
My point is that quality is far more important than price. You might think you are saving a hundred dollars by going to your local suburban accountant (who does not specialise) – but when you find yourself served with a subpoena you might wish you spent a little extra. The decision to save $100 might end up costing you many hundreds of thousands in accumulated assets (Not to mention stress, lost sleep and a broken marriage).
Keep in mind that while you might get a quote from an accountant for your trust it may not be all inclusive. You will probably end up paying extra when you factor in Stamp Duty (most states) and extra time costs (eg registering for ABN, GST etc)
Eds trusts are also very designed to be as flexible as possible. NOT all trust deeds are equal. As Dale mentions in his book some deeds contain restrictions either by intention or omission.
Cheers,
GregGreg
yes very good point. You must get a good trust deed or they can be worthless.
Terryw
Discover Home Loans
Mortgage Broker
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
Hi again,
I understand that it will cost me about $3000 to get a trust set up by one of Ed Burton’s consultants. The kit that was sent to me is filled with newspaper clippings about incidents in which people have been sued. All clearly aiming to make us think about how easy it is to lose the lot in these increasingly litigious times.
For a “limited time” I can get a free Risk Analysis (“valued at $220”), which will not doubt prove that I need to fork out 3 grand to protect my assets.
Why does it so often seem that the ones making the killing at the gold rush are the ones selling the spades???
Does $3000 sound like a lot to set up a trust?
cheers,
CarlinGood trust deeds can be setup for about $257 at http://www.lawcentral.com.au
The solicitor there is Brett Davies who is doing his Ph.D. in asset protection.
But if you want some advice etc, it may be better to get an accountant/lawyer to set one up for you. To do this it usually costs $1000 at least for the trust and then another $1000 or so for the company. Plus stamp duty, and fees for ABN etc
Terryw
Discover Home Loans
Mortgage Broker
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
Hi Carlin,
I’m also from SA and just starting out too. Please keep me informed of your progress. I’m interetsed to know which way you’re going, either an accountant or via this Ed Burton consultant. $3K is way beyond me though so i’m hoping you found a good SA accountant you can reccommend.
Best wishes.
Hi Learningtoinvest,
will let you know when I find an SA acct to help with this, tho’ will also suss out accts interstate.
Just back from an auction. Quoted 300+, sold for 405. Six active bidders.
I don’t care what anyone says, SA is still too hot for this little duck.
cheers,
CarlinHi Carlin
I generally assess a clients position before establishing a trust structure. I do set up and advise on HDT structures + we also provide on going support which includes Financial statments and tax returns.
We charge $2640 for a company + HDT. Stamp duty is on a state by state basis.
feel free to contact our office or go to my website for more info.
Good luck
Nick MOriginally posted by NickM:go to my website
Which is at:
http://www.strategicwealth.com.au
Just to make it a little easier to find [biggrin].
GP
Hi Nick,
You gave your charge for a company, but what’s your charge for an individual?
thanks,
CarlinOriginally posted by carlin:You gave your charge for a company, but what’s your charge for an individual?
I believe those charges mentioned are for establishing a company and HDT. Most people don’t charge for establishing an individual [biggrin].
GP
Hi Carlin & learningtoinvest,
the Adelaide accountant I used to set up our family trust was David Hilton, at DHC Group, Level 6, 185 Victoria Square. Ph 08 8218 4888. He is a property investor too.
Terry
(no commercial affiliation etc)Terence McMahon
HomeWin
Financethanks Terry – I’ll give him a call. Good to have someone local.
Carlin
You must be logged in to reply to this topic. If you don't have an account, you can register here.