Please excuse my ignorance in regards to this issue, I mean no offence to posting what some may view as a particularly simple question.
What exactly is a trust in regards to its use in property investments. Why would someone want to use a trust instead of purchasing property in their own name? Is a trust usually used by those with a larger or smaller portfolio? What are the tax implications? Thank you in advance to those who can attend to my questions.
mgs2
The main reason why trusts are used is to protect assests from attack.
A trust also allows you to own nothing but control everything.
‘You will never go broke taking a profit’
hi mgs2
have a read of the last 4 days and you will read alot about trust there are
discresionary trust
company trusts.
bear trust
hybred trusts
and a myriad in between.
trusts are a tool like a trowel there are lots of different trowels for different jobs
I’m currently in 4 different ones
my advice is read about the different ones and then ask the question.here to help
Hi msg2,
I agree that if you do a search or look at the above recommended threads, this will help you get a handle on trusts per se. If you wish for professional advice, I could do far worse than recommend seeing Dale Gatherum-Goss who has written 2 excellent books on the subject
Kind regards,
GAtsby.“Sometimes the hardest thing to do in life is often the best thing to do.”
what threats or attacks on assets are common?
is it really worth it?
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneYes, it’s really worth it- it doesn’t cost too much and it doesn’t take too much maintenance.
It makes it easy to distribute funds as required quite easily too.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastDo the sums though..as with everything else..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorhi brahms
Is it worth it.
well go down to your local court any day and look at the notice board.
mr and mrs grab, plaintiff, high rise property trust, defendant injury claim $5,000,000.00
negligency.
Don’t believe me go and have a look.
Then tell me you don’t think its worth it.
Have a look in the mirror you’ll be telling me that you don’t think you’ll ever be audited.here to help
Hi brahms
Yes trusts are worth it if you have assets that are over $70000. The scum bag lawyers will not normally go you if you have less than this: not worth their effort.
Here’s an interesting scenario for you. Child playing with knife cuts up the carpet in rented home. One hour later mother falls over cut in carpet and breaks her arm, then sues the owner of the property for negligence. The insurance company distances itself from the claim stating negligence as its way out. Owner now has to fight the case in court plus take the insurance company to court as well, all at their expense. Sounds far fetch doesn’t it? But this is a true story.
I know some people who have a trust set up for every property they own, 1 property 1 trust. This protects them from scum bags looking for a get rich quick scheme and they only have one property that the lawyers can try and take. If you have the equity all used up on your investment properties there would not be enough money for a lawyer to try and sue you. Got to protect yourself especially if you own multiple properties with equity?
KerwynThis is one of many questionable lawsuits, and it is becoming more common as there is now a precident set. This type of thing really gets my nickers in a knot. I think that it’s the “No win no fee” lawyers that are to blame for the current litigation nightmare we are in.
Hopefully it will not last for ever.
CATA
Asset Protection Specialist
[email protected]Sue because you can, not because you should….Sh%ts me to tears….
Cabo Wabo
hi all
kerwyn you are correct.
I set up a trust per investment and non are linked if one is attacked the others stand out side the area for the lawyers to attack.
they have tried to no avail.here to help
Hi all
this has just scared the hell out of me.
I have multiple properties, no trusts??
It will probably cost a fortune now to set up in trust structure??Marisa..
You’d be amazed how dangerous it is out there..there are many..many..scary stories of tenants suing..
Be Alert not Alarmed though..
Cata can give you some good info..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorMarisa,
Get advice about setting up a trust.
My understanding re costs to transfer existing properties to a new trust is you will incur a fee to establish the trust (will differ depending on whether you are doing so to an individual or via a company), then for each property you need to transfer over you are hit with Capital Gains tax (if applicable) plus Stamp Duty. You’ll need to decide whether the cost is worth protecting your assets.
Wendy Chamberlain | Chamberlain Property Advocates
https://www.wendychamberlain.com.au
Email Me | Phone MeMelbourne Buyers Agent & Sellers Advocate | Independent | Flat Fee
You can use different stratagies that do not involve selling your property to the trust. This can save thousands of dollars but also give you the protection you need.
You need a plan of what to protect in which order.
E mail me if you want to talk.CATA
Asset Protection Specialist
[email protected]Whenever our group purchases a new title, we get the accountant to set up a new company and new trust to put it in. Costs about 2K.
Hardest thing we find is deciding what the company name and trust are going to be called. It’s pretty tough work, but hey, someone has to do it.
Trust owns the prop and the company is the trustee. We control the trustee.
Never any linking between props. You come across some clowns in life…and you never want your financial freedom to be put at risk due to them and their silly whims.
The other advantage we find, other than asset protection, is our Land Tax bill is kept to a minimum. Multiple properties are not being lumped on top of one another against the same legal entity (be it person or company) and therefore the SRO’s silly compounding formula for working out Land Tax assessments never cuts in. Beautiful.
Good luck everyone.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
yes dazzling exactly
Marisa have a chat with your accountant I don’t know your situation but if you read my posts I say it is very important to setup the vehicle correctly from the start.
I uses trusts and companies, I also use mule investments trust and bear trusts.
This may sound technical but talk to a specialist trust accountant.
once setup you will understand why and what they are used for.
costs, I pay $1200.00 each trust and I have one accountant company looking after all of themhere to help
Hi,
I’d like some recommendation on good books to read to get an understanding of the different trusts, how they can be applied to investments especially in Australia.
Tanks
Hi STran,
Read the “HDT Savvy accountant in perth” discussion under the help forum, redwing suggests a couple of books on trusts and structures there.
Cheers
Jules
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