I advise on on asset protection and trusts etc, but I generally try to talk people out of using trusts to own property. Probably less than 10% of my clients use them to own property. Asset protection (on bankruptcy) is generally not an issue for most people, even doctors. I have yet to see a doctor sued for negligence and in most cases their insurance would cover it – and their employer because of vicarious liability.

But the main reason you should consider asset protection is for business. If you enter a business at some stage in the future then your previously purchased assets will be at risk. Many businesses fail and even if you are using a company structure to limit liability the directors usually need to give personal guarantees. If you think you might get into property development then this is probably more risky that the average business.

So generally speaking it is a good idea to buy assets such as the main residence in the name of spouse A – who is least likely to enter a business or be sued. Investments could also be done in the name of spouse A while spouse B conducts the risky business through a company structure. Once land tax thresholds of spouse A have been used up then perhaps consider a trust to own investment properties.

What does Destiny charge for this service? You should ask whether they are licenced to give the appropriate advice. Generally no licence is needed for property advice as it is not a financial product but any advice will involve legal, taxation and credit matters.

Only a good idea if you don’t have a non deductible loan.

You don’t need a financial planner but a lawyer as it seems you have negative net worth and you could be tinkering on bankruptcy. It sounds like all your properties are cross collateralised and you may not be able to release the mortgage even if you managed to sell a property. I wouldn’t borrow from family as it may be unlikely you will be able to repay them.

Do you know which properties are securing which loans? Even the sale of a property with some equity may not be possible as it could trigger a valuation and then the bank will require existing loans to be paid down to maintain acceptable LVR – which you may not have the funds to do.

One strategy may be to stop paying the loans now or to just pay 1 loan, get this one down and sold and then let the bank take possession of the others.

This is why you should never cross collateralise.

Sounds like they charged you a fee for things which others provide for free. not sure if any of the above are something FOS can investigate. You seemed to have entered a contract with them to provide services which they provided.

Maybe contact the dept of fair trading in your state first, and ASIC investigate these marketing schemes involving paying the home loan off sooner.

You should retain evidence in case you are audited. If the ATO sent you a letter asking for evidence that the property was your main residence what would you give?

Yes it is possible.

yes you could change from TIC (owned 50.50) to JT generally without stamp duty. But why would you want to? This is an ownership structure change but will also need consent of your lender as they hold the title deeds.

How you structure ownership may also hold you back. A company is an usual way to own (did you set up this for land tax in NSW?) but you can limit guarantees by strategically choosing the director. This will free up the borrowing capacity for the non director. Sometimes one spouse will own but both will be on the loan. If this is not needed for servicing that loan then the non owner spouse should be immediately removed – both for asset protection and serviceability of future loans.

Pay more what?

Paying principal of a loan is not deductible.

Why would you want to make it negative? That would mean you are losing money. You would be spending $1 to save 45cents. Doesn’t make sense.

The ebook is in the signature
“Trusts and Tax for Property Investors” download free at http://www.propertytaxsolutions.com.au/

The loan agreement is that between the trustee as borrower and yourself as lender?