Could someone please give me an idea why I would/should use a trust or a company as people on the forum have been mentioning. I have two properties presently and am about to make that 6… I have never thought of owning them any way other than solely.
Thanks in advance.[biggrin]Hi Kendo
I think if I were to give you an answer here, I’d just miss too much important information. To answer this question properly, I’d recomend you get an educational resource like Steve’s “Wealth Guardian”. I found it to be a great resource for my initial education into understanding and using the various business structures that are “out there”.
I’m sure others on this forum will have alternative educational resources they too can recomend on the subject.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
The primary reasons for using a trust are flexibility in distributing profits, which helps minimize tax, and asset protection.
GP
At the risk of being picky GP you should swap your two reason arround. Just to keep the ATO happy.
CATA
Asset Protection Specialist
[email protected]Actually to make both the ATO and bankruptcy courts happy you should be saying number 1 Estate and Retirement Planning
The advice I have says that this is not necessary,as long as Asset Protection is the main reason the rest ae secondary benifits.
CATA
Asset Protection Specialist
[email protected]Thanks for the advice guys (and girls!). Will probably just continue with private ownership as is for a little while.
Cheers.[biggrin]The problem with claiming that asset protection is the main reason for restructuring or structuring could lead to a lawyer arguing in court that the only reason you did so was to defeat the creditors and therefore the structure would be ineffective as the courts could apply the claw-back provisions. The 2 year limit would no longer apply. Asset protection should never be the primary objective.
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