The Trust Structures Guide 2005

Would have to be an interesting read……
Thanks Terry

kp

Its been around for a while now. Ive been purchasing it through the Taxation Institute of Australia for the past few years.

In my opinion one of the best value books on trusts available. Easy to read, lots of diagrams and great for the professional.

I think it would be too heavy for the novice but for those interested in a good in-depth discussions on ALL types of trusts this is the book.

I dont get it. If a trust couldnt save you from a possible sueing. Why else would you pay $1000 a year for a trust. I have been trying to get my head around it for a couple of years now. Some people say they wouldnt purchase an IP without a trust and others say its not worth the money to pay for the trust. I have a friend that believes that the only reasons that an accountant recomends a trust is to line his own pockets.

Can anyone enlighten me.[dead2]

Beck.
“You have to leave your mouth open for a very long time before a roast chicken flys into it.” Early Proveb.

THATS what i want LOTS of pictures explaining things in laymans terms. Moreso i want a step by step book on the day to day running requirements [biggrin]

has anyone read this one (looks interesting so far)Coastymike can you recommend any?

Successful Trust Management
$31.07 ex GST
$34.95 incl GST

**REVISED 2005 EDITION**

The objective of this book is to provide easy-to-understand information about how to successfully set up and run a trust. It is also a guide for those people who have a trust and want to make sure it is run properly and successfully on their behalf.

Successful Trust Management explains how to accomplish important financial objectives through establishing a trust as part of an asset protection programme. By doing this, you can achieve financial safety and protection, both during your lifetime and for those you wish to pass your successes to.

Drawing on many years of experience as a trust lawyer, Ross Holmes gives explanations of the parties involved in setting up a trust, how to prepare a trust deed, what the different parts of a trust are and how to successfully structure a trust. his descriptions are supported and illustrated with the relevant court cases that guide trust law in New Zealand and Australia, as well as giving information about where to go for further information.

or

Success with Trusts
$26.62 ex GST
$29.95 incl GST

Success with Trusts explores and explains the reasons for setting up an asset protection plan that utilises trusts, resulting in financial safety and protection both during your lifetime and for those you wish to pass your successes to. This book gives the keys to successful asset protection planning, giving advice and guidance on how to succeed through identifying risks, planning now, making your asset protection work, making your trust work, and success through recording and regularly updating your objectives

or this one (I have Dales books, but am looking at these as well)

Sham Trusts
$26.62 ex GST
$29.95 incl GST

Everyone with a trust will need to purchase this book.

Trusts have become increasingly popular over recent generations as a result of the expansion in personal wealth which has occurred during that period. If a trust is established and administered genuinely, as part of a comprehensive asset protection plan, it will assist you to achieve your objectives and prosper.

Many trustees are unknowingly sitting on a time bomb as a result of the failure of advisors forming trusts to provide practical guidance on trust law, the running of trusts, or the duties of trustees. This has resulted in many trusts being either shams i.e. invalid, or a series of sham transactions. The sad fact is that in many such cases the advisors and trustees do not realise that they are shams.

The myth that independent trustees must be appointed, is continuing to be expounded by advisors, resulting in further sham trusts or transactions. The same principles used to set aside trusts as shams are used to set aside companies as shams. Yet the advisors who maintain that independent trustees are necessary for credibility in the case of trusts, do not express the view that independent company directors are necessary for credibility in the case of private companies. The cases establish that far more trusts with independent trustees have been set aside as shams than trusts without independent trustees. This has occurred in many cases because of the failure, in practice, of many independent trustees to genuinely take part in decisions involving the trust, and a failure on the part of trustees to understand what a trust is, and how to exercise the duties of trustees. This in turn has often been caused by the absence of practical guidance from the advisors setting up the trusts.

Many trusts are not set up as part of an asset protection plan with a strategy and a method of achieving that strategy. Just as business plans and investments plans without a strategy will fail to achieve the desired objective, so do trusts formed without an asset protection planning strategy.

Wasp
**************************************************

Its not what you earn but what you do with what you earn

Hi GR,
Great idea.
I for one would be willing to chip in to buy the book – I really need to learn a lot about trusts as I don’t understand them and wanted to know if they would suit our investment strategy. This is despite the fact that I have read Wealth Guardian – this seemed to create as many questions for me as answers so was not comprehensive enough.
Anyone else coming to the Sydney meeting interested in chipping in ?

Cheers

MIKALA

Rebecca,

Here is a little information with respect to trusts and how things work in the case of bankruptcy.

Firstly a trustee is personally liable to creditors in respect of debts and liabilities incurred on behalf of the trust. It is a statutory right found in the trustee’s legislation in all States. The right to an indemnity provides the trustee with a right in the nature of an equitable lien or right over the assets of the trust. The creditors cannot make a claim against the assets of the trust but are subrogated to the trustee’s right to be indemnfied.

So how does this provide protection. Well lets assume you run a business through a discretionary trust with a corporate trustee. Let’s also assume you have a separate discretionary trust with a different corporate trustee over your investment property. If in this case the business was sued the creditors will only have the right for the trustee to be indemnified over the business assets. Because the investment property has a different corporate trustee in a different trust then that investment asset is not available to the creditors. That is why a corporate trustee is the preferred entity as oppossed to an individual trustee. If you had two discretionary trusts and both had the same trustee then yes you could have a problem. The creditors might claim that they have a right to be indemnified not only against the assets of the business trust but also the assets of the investment trust. The risk is low but always subject to the Courts. However if the investment trust and business trust have two totally different trustees then the assets of one trust are effectively protected against claims made against the other trust. Thats the asset protection.

Imagine that you are a business owner and have a company which you are also a director. The company is sued and they then sue the directors. Lets assume your investment assets are held in your individual name instead of in a separate trust with a separate trustee. Well you have a problem because the investment assets are the assets of the directors and available to the creditors when they take action against the directors. Not so when the investment assets are in a different trust with a different corporate trustee.

That is why some people like to have a separate trust and sometimes even a separate corporate trustee for every investment type. I have some clients who have a separate trust for every single investment and also a separate corporate trustee. For the average person this may be overkill and in fact would be very expensive. However for others it provides a secure peace of mind.

At a minimum however I would always suggest keeping your business assets and investment assets in two separate structures. Good asset protection.

There are also advantages with respect to streaming of income as suggested by gross, the refinancing principle which is rarely discussed and sometimes even more importantly the estate planning issues.

I love you guys, you have helped heaps.

Beck.
“You have to leave your mouth open for a very long time before a roast chicken flys into it.” Early Proveb.

Hi Terry,
Thanks for posting the new book on Trust Structures.
Kind regards,
Gatsby.

“Sometimes the hardest thing to do in life is often the best thing to do.”