Hello Again,
I have just read Steve's new book….. and he says that one of the biggest mistakes you can make is to have IP's in your own name, rather , have them in a different structure…. Can someone briefly explain to me the benefits of this, as I am not one to understand all the legalities yet.
Can IP's already owned be changed into the new name with out " selling " the property?
How easy is it to get a business name ( as such) without actually having a business???Fidel
Fidel
Regretfully you are unable to transfer the property into an alternative name with incurring stamp duty (ignoring the Love and Affection clauses available in certain States) as it is treated as a Sale.
In saying this there are many reasons why you would still do this. A Trust structure can give you a combination of Asset protection on the basis you use a Discretionary Trust as well as flexibility when it comes to distribution of income at year end.
Richard Taylor | Australia's leading private lender
The best reason of not owning a property in your own name is that if you are sued and go bankrupt, the property could out of reach of your creditors.
Tax reasons: If a discretionary trust owns an asset, the income from this asset can be distributed to a wide range of beneficiaries – usually those on low tax rates = massive tax savings.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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