hello,
I set up a trust with a company trustee for investment purposes and recently have begun to use the trustee company for business as well. My accountant said I should have started a new company but i decided to do this to save some $$$.
I am wondering that if for some reason my company was to be sued (in business) then would it affect my assets in my trust? Would my assets be at risk even though the company is not a beneficiary (only a trustee)???
Yes, possibly.
Trading companies go under all the time. What if one of your major clients went bust owing you thousands? The company may not be able to pay its bills and may go under.
Even though the company’s other assets are held in trust, they may still be at risk.
Maybe better to spend another $1000 to set up a new company just to be sure. The new compay’s shares could be owned by the existing trust.
Terryw
Discover Home Loans
Parramatta
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It is not worth the risk IMOP. For the cost of a new company the benifits outweigh the risks.
CATA
Asset Protection Specialist
[email protected]I’ve set up a 2nd pty for similar reasons. Its worth it.
Cabo Wabo
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