Im looking at getting into IPs and a friend recommended the use of a Hybrid discretionary unit trust instead of holding the properties in the individual names of my wife and myself. While i understand the advantages of using such a trust would welcome feedback from anyone using one. Also does the ATO APPROVE of the use of it, or is it on their alert/ watch list and subject to change in the future? any comments would be greatly appreciated
Hi Jacquin,
I have heard a guy called Vaughan Carlin talk on asset protection (inc hybrid trusts, descretionary trusts, etc). He is very good. Can be contacted on 0438 828 676 or [email protected].
Good luck.
DannyHi Jacquin,
I have also heard Vaughn speak and highly recommend him.
Regards
AlistairIf you want to check out what is on the ATO hit list , havea look here.
Hybrid trust seem to be the way many are going , so some legal people have expressed concerns that they may not offer as much protection as a standard trust.
Main advantage is they able you to negatively gear. If you don’t need that or anticipate needing it , then it’s probably not worth it.
Nick Moustacas at Strategic Wealth management is another person who deals with Hybrid trusts. I have seen him but not in relation to hybrid trusts.
See Change
If a hybrid trust is not maintained correctly, it will not hold up against a lawsuit. I do not believe it is necessary for the majority of people and is overused by some. I have heard of tax barristers breaking into some hybrid trusts is about 5 minutes because it was not maintained or set up correctly.
These can be tricky beasts, be careful.CATA
Asset Protection Specialist
[email protected]There are certainly legitimate reasons for using a Hybrid trust and, properly administered etc, they’re AOK and above board.
But, please, don’t take advice from a “friend”. Get a specialist to advise you. Ed Chan from Chan & Naylor Accountants in Sydney is awesome. He’s an investor and developer himself and one of countries best and most respected advisors on structuring.
We find a lot of advisors forgot to take land tax into consideration when advising on structuring. Your structuring mechanism should consider this as well as impacts on CGT, Stamp duty and income tax.
There are different land tax rules in each state regarding Trust structures. Make sure you get it right or you might get yourself a big land tax bill each year!
Regards
Megan
Failing that..post some Questions here..Cata , Coasty Mike and others with a lot of experience regarding Trusts are happy to help out..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorthanks to all those who provided feedback and comments on this issue. You have provided some good accountants for me to follow up with. I will share my findings with you all, once ive met with these guys. the accountant my friend mentioned is chris batten who supposedly specialises in these matters. has anyone heard of him, or the products he promotes,is he above board, respectable etc?
Originally posted by Cata:If a hybrid trust is not maintained correctly, it will not hold up against a lawsuit. I do not believe it is necessary for the majority of people and is overused by some. I have heard of tax barristers breaking into some hybrid trusts is about 5 minutes because it was not maintained or set up correctly.
These can be tricky beasts, be careful.CATA
Asset Protection Specialist
[email protected]Originally posted by Cata:If a hybrid trust is not maintained correctly, it will not hold up against a lawsuit. I do not believe it is necessary for the majority of people and is overused by some. I have heard of tax barristers breaking into some hybrid trusts is about 5 minutes because it was not maintained or set up correctly.
These can be tricky beasts, be careful.
hi Cata, what do you mean by “if hybrid trust is not maintained properly” . Can you plse elaborate, thanyou
CATA
Asset Protection Specialist
[email protected]Chris BATTEN Is very well known and repected IMHO
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by gafama:There are certainly legitimate reasons for using a Hybrid trust and, properly administered etc, they’re AOK and above board.
YES.
But, please, don’t take advice from a “friend”. Get a specialist to advise you.
This is important.
I believe the accounting side of a HDT is more complicated than it appears. I am no accountant but I think that if it’s not done exactly right(and you wont know unless you are sued) then it will fall in court, leaving you exposed.
Allot of people will disagree, and that is ok, but this is my opinion.
If you have a good accountant, they should be able to help you.
Yes I do set HDT’s up for people if they want and if they have someone to do the accounting.This is my opinion only.
CATA
Asset Protection Specialist
[email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
