All Topics / Hotch Potch / Trusting the Wrap

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  • Profile photo of FishFish
    Member
    @fish
    Join Date: 2004
    Post Count: 14

    Hello all,

    I’m hoping that I might receive some feedback from those having conducted vendor finance transactions –

    Should I perform VF transactions through a trust? If so, a HDT or Unit Trust?

    If a trust is used, does the trust afford the client any particular protection wrt his property, other than lessening the chance of creditors gaining access to my assets – and the client’s future home? Ie. does the use of a trust for a wrap transaction provide you with any additional selling points which might help secure the client?

    Are there particular benefit in running vendor finance transactions as a business, using a separate business trust, rather than operating as an individual, using the individual’s usual investment trust?

    Thanks to all.
    Regards

    Fish

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Fish

    I’d suggest you sit down and discuss these very important questions with a “switched on” accountant.

    In the meantime, if you’d like to educate yourself on these subjects, I’d recommend Steve’s “Wealth Guardian” kit which is available on this site. It’s an easy read and is a fantastic educational resource.

    I hope this helps.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of FishFish
    Member
    @fish
    Join Date: 2004
    Post Count: 14

    Hi Paul,

    Thanks for the reply.
    Tried to get WealthGuardian which sounded great…but no longer available.
    Seeing the Accountant today.

    Hope I know enough to know whether he’s switched on.

    Cheers

    Fish

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I am not an accountant, but have wrapped myself and I have used a discretionary trust. Since you will be making positive cashflow, there is probably no need to use a hybrid trust, and I can see no point in using a unit trust (unless in partnership?).

    Using a trust would not really have any effect on the end purchaser other than protetion of your assets against external creditors.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    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

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Fish

    Sorry to hear that it’s no longer available. I found it to be an invaluable resource.

    You you are going to talk about a “trust structure” with your accountant, make sure he/she explains to you the benefits of using a registered company as the trustee of the trust.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

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