Set up Trustee and Trust

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Rich Mum
Member
@rich-mum
Join Date: 2007
Post Count: 11
August 29, 2007 - 12:26 pm
Hi all,
I am reading the wealthguardian book, and have a question on casestudy on page 81 Step 1 setup the trustee and trust.
My plan is to set up a trust to buy IPs and corporate trustee with my hubby as the sole director. In the case study the wife then buys all the issued shares and owns all the personal assets under her name.
My question is how does she acquire the shares in the company if it is a private company. Or is this done upon setup of the company i.e she is the secretary of the company and the company issues her the shares.
Can any one clarify this point?
Thanks in advance

Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 30, 2007 - 7:50 am
When you set up a company you just nominate how many shares there will be and who the owners will be.
Its good to see you have a buddy to take all the risk for you! Does he or she realise they will be guaranteeing the loans? Its good for you if they do, as it will be risk free!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Rich Mum
Member
@rich-mum
Join Date: 2007
Post Count: 11
August 30, 2007 - 11:56 am
Thanks Terry.
IS there a way to mitgate the risk for the buddy as well?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 1, 2007 - 3:39 am
Not really. The Buddy should ideally have no assets in his name. Being a direct is risky and giving personal guarantees can be risky if the project goes bad as they bank will come after his other assets, if he has any. However, someone has to guarantee the loan, or the lender will not give finance.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 1, 2007 - 10:20 am
Not really. The Buddy should ideally have no assets in his name. Being a direct is risky and giving personal guarantees can be risky if the project goes bad as they bank will come after his other assets, if he has any. However, someone has to guarantee the loan, or the lender will not give finance.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au