Hi All,
Relative newcomer’s question – I have been reading a lot about trusts and the pros and cons -I was considering setting up trust for benefit of asset protection before we go too far along (as I believe it gets more expensive to set this structure up the more properties you own – I think??)
Our insurance cover is for building/landlord/liabilty cover so if someone hurt themselves wouldn’t the 10 million liability insurance cover all situations if the house and gardens are in great condition – wouldn’t the injured person have to prove negligence i.e. the property was not well maintained or something to that effect ???MIKALA
Cata should be able to give you some *insights* here..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks,Redwing…will send a PM
MIKALA
Dont forget that Trusts have many benefits such as being able to distribute income etc and are a long term strategy IMHO essential when looking at estate planning, retirement etc as well..
Family Trusts, Unit Trusts, Discretionary Trusts, Hybrid Discretionary Trusts.. yada yada..
Cata or Coasty Mike might post some more info here for everyone as it’s thier field..
There are some great books out there, Dales Trust Magic, Steve’s Wealth Guardian and Ed Burtons Bulletproof Asset Protectionare all worth reading IMO.
Here’s some links for you
http://www.macquariegs.com.au
Need to be a member to benefitYour on Steve’s site, so can find Wealth Guardian here and I dont know that Ed Burton has a site?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks for the links and great advice – looks like I have some reading to do….
MIKALA
I do recommend insurance but this does not cover everything. Criminal negligence is the main one,as you can not insure against a criminal act.
You are responsible for the upkeep of your IP’s even if you have a manager. If someone sues you for an injury sustained in a IP it can be argued by your insurance company that you were negligent.
This would then have you fighting 2 court battles, one against the litigant and and against your insurance company to prove that you are not liable.
Remember that insurance companies are only in it to make money. Sometimes it is cheeper to fight you in court than to pay you out.
There has been some interesting cases. Most you will not hear about as 90% of cases will settle out of court, therefor the settlement sum is confidential.
CATA
Asset Protection Specialist
[email protected]As another newcomer to this side of IP’s, I have also seen some stuff about using companies to purchase IP’s.
Are there any other methods people use and how do they all stack up? Or does it all come down to personal strategies etc?Cheers
BURNDEREBurndere..there’s definite reasons for buying in different structures..Trusts are for Asset Protection primarliy but have other benefits..
Some Investors buy in companies as well..
From memory Steve was using a Family Trust structure..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
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