Hi again to all,
I was just contacted 5 min ago by the office of Dale Gatherum (the one you buy ‘Trust Magic’ from). Upon explaining my situation to them they concluded the following:
– Positive geared property –> Family Trust…why – because of Asset protection.
– Trust setup timeframe –> 1 week
– Trust cost –> $2,200.00 (payable upfront)“The Trust setup and cost includes the setup of the company aswell. They reccommend a Company with the Trust and said that if you don’t get a Company, they charge the same rate to set the Trust up alone. The Company is a must for Asset Protection and for ever being sued.”
They said,
“If The Trust gets sued, you as an appointer would sack the Trustee (that is – the company) of the Trust and then pay another $1000.00 to set up another Company (which you would appoint as the new Trustee). You the whole time are the sole Director of the Company and one of many beneficiaries of the Trust.”They are not able to help me with my final question as they have no idea of the NZ Tax laws and deal only for Aussie investors. They can tell you everything about Aussie Trusts but cannot give advice on NZ Trusts.
That was our conversation – Hope it helps some of you – it sure helped me.
Kind regards,
George.“If You never never ask, you’ll never never know”
Just curious & to be the devil’s advocate…
My understanding is that most banks required a director’s guarantee as security when lending money.
How does a trust protect you if you have given a personal guarantee?
Shushar
Hi George
i’m not the expert who wrote the book on trusts but my understanding is the assets are still protected in the trust from personal litigationeven if you are the trustee not a corporate structure. As the asstts in the trust are owned by the trust not the trustee. so if i was sued they can only pursue my assetts not those of the trusts.
bye westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Originally posted by westan:Hi George
i’m not the expert who wrote the book on trusts but my understanding is the assets are still protected in the trust from personal litigationeven if you are the trustee not a corporate structure. As the asstts in the trust are owned by the trust not the trustee. so if i was sued they can only pursue my assetts not those of the trusts. bye westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hi Westan,
If the invidiual (ie You, Westan) is the Trustee, then who is the Appointor? or you take three roles (Trustee, Appointor, Beneficiary) in the trust?
Does it works? [glum]Cheers
Julian [strum]
THERE IS ALWAYS A BETTER WAY!
In this case you are the appointer, the company is the trustee and you are a benficiary.
Rgds.
Lucifer_auhi guys
in my trust janine (wife) and i are the appointers, i am the trustee and my children, my wife and myself are the benificiaries.
we also make distributions to our church which is great because we can donate with pretax dollars where as if it was from an earned salary it would be after tax dollars.
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Originally posted by westan:hi guys
in my trust janine (wife) and i are the appointers, i am the trustee and my children, my wife and myself are the benificiaries.
we also make distributions to our church which is great because we can donate with pretax dollars where as if it was from an earned salary it would be after tax dollars.
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Thanks Westan, You open my eyes.
Julian
THERE IS ALWAYS A BETTER WAY!
Hi Westan,
this would work well with a family like yours Westan – all set up. I would follow the same if I was married with children.
But as Im single, If I was the Appointer, the Trustee and the Beneficiary who owns the Trust, and I (as the Trustee) got sued, I (as the Appointer) would then sack the Trustee (who is myself) and appoint another.
The office of Dale Gatherum said this would cause me a dilemma as I would be sacking myself – they said it’s possible but it wouldn’t go down well in a court case.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Originally posted by geo:They are not able to help me with my final question as they have no idea of the NZ Tax laws and deal only for Aussie investors. They can tell you everything about Aussie Trusts but cannot give advice on NZ Trusts.
Hi George,
This comment seems to have been largely overlooked in the subsequent discussion. It clearly highlights a need for individuals to seek expert (read local) advice when buying overseas.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hey Derek,
I would have hoped that there would be some expert who could advise on the pros and cons of NZ structures versus Aussie structures – Im yet to find one…[confused2]
Kind Regards,
George.“If You never never ask, you’ll never never know”
Originally posted by geo:I would have hoped that there would be some expert who could advise on the pros and cons of NZ structures versus Aussie structures – Im yet to find one…[confused2]
It’s a great niche for someone just waiting to be filled….
Cheers,
Aceyducey
Geo,
Check out Chris Raynal at
http://www.masteraccountants.co.nz
He is an expert on NZ structures for Australians, I also found his products to be very competitevly priced.
PM me for any more info
Thanks so much bardon,
you may be the life-saver many of us are looking for.
take care – speak to you soon God willing,
Kind Regards,
George.“If You never never ask, you’ll never never know”
Great Post Geo [thumbsupanim]
Trusts seem to be a Hot Issue
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAt http://www.incorporator.com.au you are able to set up a company, which based on what acountants charge for doing this, might save you around $200.
Might be easier to do this and then get your accountant to establish the trust only.
James
Originally posted by georgisj:At http://www.incorporator.com.au you are able to set up a company, which based on what acountants charge for doing this, might save you around $200.
Yup Incorporator is bloody good.
I’ve used it several times myself.
Cheers,
Aceyducey
Trusts can be set up at http://www.lawcentral.com (.au?)
I’ts very user friendly and they always answer any questions you might ask thru their web siteworth a look
Do they do discretionary trusts? I have had a look and it seems they do standard family trusts..
James
Just a quick note I forget to mention is that Dale’s office are increasing their fees from 1st of July this year.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Hi Geo,
Thanks for the research you’ve done mate. I’m also single with no dependants so this will affect what road I need to travel with trusts and asset protection.
Cheers mate,
Gatsby.
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