All Topics / Legal & Accounting / discretionary trusts

Viewing 19 posts - 1 through 19 (of 19 total)
  • Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211

    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.

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714

    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

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211

    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,
    Carlin

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Ed 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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of ss2306ss2306
    Member
    @ss2306
    Join Date: 2004
    Post Count: 55

    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
    Shelley

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211

    thanks Shelley. I’m in SA, but I will still give Edward a call because he may do business here.

    regards,
    Carlin

    Profile photo of GrregGrreg
    Member
    @grreg
    Join Date: 2003
    Post Count: 121

    Hi 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,
    Greg

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Greg

    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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211

    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,
    Carlin

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Good 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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of learningtoinvestlearningtoinvest
    Member
    @learningtoinvest
    Join Date: 2005
    Post Count: 9

    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.

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211

    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,
    Carlin

    Profile photo of NickMNickM
    Member
    @nickm
    Join Date: 2004
    Post Count: 8

    Hi 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 M

    Profile photo of GreatPigGreatPig
    Member
    @greatpig
    Join Date: 2004
    Post Count: 284
    Originally 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

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211

    Hi Nick,

    You gave your charge for a company, but what’s your charge for an individual?

    thanks,
    Carlin

    Profile photo of GreatPigGreatPig
    Member
    @greatpig
    Join Date: 2004
    Post Count: 284
    Originally 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

    Profile photo of SaskatoonSaskatoon
    Participant
    @saskatoon
    Join Date: 2002
    Post Count: 112

    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
    Finance

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211

    thanks Terry – I’ll give him a call. Good to have someone local.

    Carlin

Viewing 19 posts - 1 through 19 (of 19 total)

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