All Topics / Legal & Accounting / Sueing a trustee company

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  • Profile photo of InfiniteInfinite
    Join Date: 2004
    Post Count: 28


    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)???

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    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.

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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of catacata
    Join Date: 2005
    Post Count: 559

    It is not worth the risk IMOP. For the cost of a new company the benifits outweigh the risks.

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    Profile photo of Cabo WaboCabo Wabo
    Join Date: 2005
    Post Count: 117

    I’ve set up a 2nd pty for similar reasons. Its worth it.

    Cabo Wabo

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