One of my parents has entered into a defacto relationship and it is rumoured that their new, much younger, partner is mainly in it for the money. I think/assume that the best way to protect my siblings & my inheritance is to set up a bloodline trust and move my parent's assets into it – is this the best thing to do? I don't really know how to go about this, other than leaving it to my accountant. Also, will it be a costly and complicated exercise? If it is, I fear I will have trouble selling it to my blissfully ignorant parent who thinks the worst would never happen. Perhaps I'm cynical but I'm not prepared to risk our future security on the whim of someone who's intentions may not be so honourable.
Any advice will be much appreciated, prior to me paying to speak with my lawyer & accountant. Thanks in advance
I am afraid a trust won't be a 100% effective. The Family Law court has powers to look behind companys and trusts and divide up the assets as if they were the personal assets of the people. But they can still assist a great deal.
I think you should be speaking to a specialist lawyer. The legal advice may be a bit expense, but better safe than sorry, however it may be very expensive to move existing property and other assets into a trust because stamp duty may be payable and CGT. There may be other ways to protect the assets without transferring them such as mortgages and options which may be much cheaper – and maybe more effective.
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
THis is another form of protection
read this
http://www.rpemery.com.au/online/cohabitation-agreement.htmlAs above, seek specialist advice. In the first instance you will need to convince your parent even before going to the solicitor. Unfortunately, wills can be changed, even whilst on your deathbed, so you will need to have the right protections put in place well before this eventuality. It also presupposes that your parent will be gifting their assets to you rather than using the assets to support their own lifestyle (rather than selling them and living the high life).
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