Hi all,
I read a paper from a lawyer that said when
investing in property always aquire the property in a discretionary trust than in an
individuals name.This is for better tax benefits and asset protection.The paper shows
how you can save over 100K on a IP by doing this over a 15 year period.
Any Thoughts????Hiya,
I’ve recently spent over $1k researching this topic with some senior taxation accountants at BDO in Adelaide. To be honest, it was money wasted because there was nothing that I learn’t which I didn’t really know (except that it takes an accountant $500 and three days to write up a simple transcript of a 1 hour meeting).
Anyway, I want to understand from the asset protection point of view, that a trust structure could be useful. Except when discussing it with the accountants, they still informed me that the trustee is liable for the trust itself. This raises a rather large issue with me, in terms of, how do I really get protection by using a trust, where the trustee must be someone I trust (or myself – that doesn’t make sense), or a company which has a directory whom I must trust. Remember, a trustee is as liable for a claim on a trust as you would be if the IPs where under your name…
From what I was able to gather, having a trust means that you really being reliant upon another person in some way.
As for myself, I still haven’t decided between an actual trust, or under my own name? I mean, how can I claim a tax deduction for Steve’s Seminar when my trust is the owner of the IPs? [
]Which types of structures do other people like???
Steve, could you maybe shed some light on the possible structures?
There’s an article on this in the JB FAQ at:
http://www.mastermindforum.com/resources/burleyfaq2.htm
Its written by Bruce Whiting, JB’s Oz accountant for Australian conditions. Just scroll to near the bottom of the page. From memory he advocates using a single director company (for protection) whos share are all owned by a trust (for tax benefits).
Quasimodo
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We are all but half formed images of our true potential.
___________________________________________________________________________Hi all
Steve & Paul Harpers new product “Wealth Guardian” covers these issues in depth and is straight forward to understand.
It is a considerably expanded set of notes based on those presented at the last Masrters event.
Steve can probably shed a little more light on this [
]cheers
the B
Sounds great!
So when are we going to hear more about this? Steve? Anyone? Inquiring minds need to know! [
]Quasimodo
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Funny how action has a way of answering all of our fearful questions…
___________________________________________________________________________Hi, Grizzly and tomjones.
I found Nigel Renton’s book ‘Family Trusts’ a very good resource. Gives the pros and cons of different types of trusts. Can be borrowed from libraries or is good value if you want to buy it. Certainly cheaper than a visit to accountants.
tomjones: in answer to your concern, you always set up a trust so that you control it! A trust may not be as useful if you are a solo act, as this is not its purpose.Terry
FinanceGrizzly
do a serch for trusts in the forum and see what comes up.
There was a posting that I contributed too about a month back, but I just can’t remember excatly the book/s that we discussed…
the B [
]Hey Mr jones,
If you set up the structure with a trust (discretionary or family) and had a company as the trustee and you as company director then as director you could claim it as a legitimate expense for educating yourself about the business your comany carries out ?? Would this not seem fair.You need to talk to a good solicitor or acct about this but as to your point on the trust being reliant on another person (director of company) why would that not be you ??
When the Trust is claimed against and you have a corporate trustee the company is liable and it is a $1 or $2 company without assets therefore not worth suing.Like I said check this out with a good solicitor.
Hope this helps.
Enjoy
AD [:0)]“Carpe diem, quam minimum credula postero.”
Lat., “Seize the day, put no trust in tomorrow.”
-Horace, Odes
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