Good people,[cap]
I’ve been looking into trust & pty structures lately.
A lil while ago, on this forum, the question awas asked “are trusts secure?” Feedback indicated that the family court could rip up a trust at will, and in that case, it was worthless.
My question is “would the court nullify a trust only if there were kids involved? or is it that trusts are just vulnerable, period.”
“Does it make any difference if the trustee is an individual or a pty?” “Is it safer under a corporate trustee?”
Are trusts secure in the case of a defacto relationship?
Cheers,
Cabo Wabo
Originally posted by Cabo Wabo:My question is “would the court nullify a trust only if there were kids involved? or is it that trusts are just vulnerable, period.”
A trust is not unbeatable. The Australian Family Law Court will look through any “Australian” structure, kids or not, married or defacto.
They will limit liability. It is all smoke and mirrors at the end of the day, the money has to land somewhere, the trust makes it difficult and possibly expensive to find for any litigant.
“Does it make any difference if the trustee is an individual or a pty?” “Is it safer under a corporate trustee?”
A trustee is liable for anything that happens in the trust. Hence the corporate trustee (a $2 company) is used to keep your personal Assets a step further away. So yes it is safer under a corporate trustee with you as director.
Are trusts secure in the case of a defacto relationship?
I believe not.
Hope this helps
CATA
Asset Protection Specialist
[email protected]Family Court has a lot of Power Cabo and I believe can roll back many protection mechanisms..
The best way out is stay single if you worried about this ;O)
otherwise, IMHO look at the other benefits different structures can offer rather than their limitations.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks for your input fella’s…..appreciated.
Cabo Wabo
Do a search on Family law court and trusts – there are a few interensting papers out there. I have downloaded some and can email in a few weeks when back in Australia if you need them.
My understanding is that the family law court can look behind a trust no matter if the trustee is an individual or a company. They do not always do this, but have hte power to do so.
But there are many other reasons to have a trust – trust assets are protected in Bankruptcy – to a certain degree.
Terryw
Discover Home Loans
Parramatta
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If you are concerned about protecting your assets in the case of separation or divorce then consider a binding financial agreement.
However I urge caution. The last 2 times I mentioned binding financial agreements to my partner(s) at the time the relationship started to go sour. They thought it was extremely unromantic and I was admitting defeat of the relationship at the outsought. Of course I had very different opinions and held the view (still do) that any wealth generated during the partnership should be split 50/50 but anything bought into the relationship should be retained by the respective parties. I’m still single so BFA’s can have their disadvantages.lol.
Your an interesting guy coastymike..
Dont forget, your Russian friend is cheaper than divorce.
hey Terry..where are you?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Redwing, I’m in Bangkok at the moment.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Terry,
Our dentist friend told me you were currently cruising around the Asian countries. Last time I heard you were in Japan. Business or pleasure ?
Both Coasty! Unfortunately, i am back in Sydney now.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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