From personal name to trust name..HELP!!!

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John G
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@john-g
Join Date: 2005
Post Count: 8
February 21, 2007 - 11:40 am
Hi guys can anybody tell me how I can transfer my six properties from my own name into my trusts name without paying huge transfers cost’s, this is a mistake I have made early on with my purchases, my current purchases are in my trusts name. This is mainly for asset protection,any ideas would be greatly appreciated!! THANKS ..[biggrin]
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 21, 2007 - 1:25 pm
Cannot be done without stamp duty, or CGT. If you want to do it for asset protection there are other ways around it. eg. setting up second mortgages on your properties to tie up any equity.
Terryw
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John G
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@john-g
Join Date: 2005
Post Count: 8
February 21, 2007 - 2:40 pm
Thanks Terry, could you explain a little more re the second mortgages & equity. thanks[thumbsup2]
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Terryw
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Post Count: 16,213
February 22, 2007 - 1:25 am
You would have to talk to a solicitor really. But my understanding is, that when you are sued the first thing creditors do is a land titles search to see what assets you have. If they find some property, they may then search and see how much the mortgage is. If they see it is mortgaged up higher, they may assume you have no equity = no assets and stop there.
Even if they do sue you and get a judgment, the first and second mortgagees will have first priority. So if you were to go bankrupt, the property may be sold and your bank and the 2nd mortgage holder would be paid out, with the remainder divided between creditors.
It is costly and time consuming to bankrupt someone so if there is only a little money to be gained, it may not be worth it for them.
You really need a good solicitor to set this up for you properly.
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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John G
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@john-g
Join Date: 2005
Post Count: 8
February 23, 2007 - 6:55 am
Thanks again Terry…[thumbsup2]
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cata
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@cata
Join Date: 2005
Post Count: 559
February 27, 2007 - 10:40 pm
Spot on Terry
Registered mortgages get paid first in the case of bankruptcy.
CATA
Asset Protection Specialist
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Mortgage Hunter
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@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 28, 2007 - 12:47 am
Originally posted by cata:
Spot on Terry
Registered mortgages get paid first in the case of bankruptcy.
CATA
Asset Protection Specialist
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So the funds from the topped up or second mortgage could then be invested through the trust and be untouchable?
This is my plan as well.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.