Hi all
just a quick one… recently read a whole load of info about trusts..and have also been told it is good for tax reasons to set one up if property investing..
if all the property investing i am doing is by me and only me (yes ladies, im single)..then what benefits are there to setting up a trust i i wont have any beneficiaries etc?
very new to this topic.
cheers!
Lyndon
Originally posted by lyndon_g:i wont have any beneficiaries etc?
Ever ???[blink]
Who gets your properties if you pass away?
Would you have your parents as beneficiaries (bloodline)?
Retirement Planning etc etc
Your situation may change in time to come, the main benefit i see is flexibility.
Do a search on the forum for this topic and you’ll find a wealth of info..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Online Positive Cashflow and Renovating CalculatorsI would suggest looking away from the normal “Taxation Benefits” Line associated with Trusts, and start looking towards the “Assett Protection” one. What happens in 10years time when you have acquired 14 Properties and your live in Partner of 2 years decides he/she is leaving you and taking half of everything you own despite the fact they haven’t contributed one cent towards your investments and wealth creation? Where does that leave you? What if you go out and play golf hitting someone in the head, leaving them brain damaged, and, like the chap on Magnetic Island off Townsville arwe sued, uninsured, and as a result have damages of $2m awarded against you like he did losing everything in the process? Or a visitor (Criminal) sues you for damages after injuring themselves (And YES they deserve it but it isn’t the point) breaking into one of your I.P.s and sues you for damages. You know you’re technically liable unfortunate as it is. You could lose the lot! And why? Because you didn’t bother with a Trust?
My suggestion is obviously rethink why you want/need a Trust…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055A great point that is often overlooked Stuart.
The kicker in cases like these are that insurance may not cover you. The guy that got hit in the head with the golf ball for example, the day was a charity day. No green fees were payed so no insurance was payed either. Or the criminal that broke into your house, he is committing a criminal offence and insurance will not cover you in a criminal case (Neglegance is also criminal).
CATA
Asset Protection Specialist
[email protected]
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