I had a quote from a lawyer for a $2 company as trustee for a discretionary trust. They wanted $2.5 to $3.5k. More if it needed some 'massaging'. That price was just to do what I specified as they didn't really want to advise me on how I should structure things.
After all my reading it seems that you really have to do your own research and get your head around the trust/company/asset protection stuff for yourself and then use that knowledge to try and find a professional that knows more than you to help get you set up.
Keep us posted on how it goes Dean and don't skimp on the details…
A good book for beginners is 'Family Trusts' by N E Renton. This will give you a good basic knowledge of any trust you may want to set up for your circumstances.
You can get a discretionary trust set up over the internet for around $800 ( read the book so you know what to ask for)
note: above mentioned book has no connection to trust sites.
And can buy a shelf company on the internet for around $500 to go as trustee.(purchase company first)Just some things for you to research if your serious about setting up an asset protection structure.
Also, once you have educated yourself on the correct trust structure for you, it would not hurt to speak to a proffesional before biting the bullet.I meant professional
Thanks for the advice Daneo79. I'm serious about getting this stuff right from now as I basically have no protection at the moment.
Just bought the book by N E Renton from fishpond… it was the cheapest I could find and free postage helps. I'll get that read and then keep going.
I am a solicitor and have studied trusts and asset protection for years. I would suggest you couldn't do it yourself without exposing yourself to so many 'things' you hadn't thought of or weren't aware of.
There are trusts set up which are invalid, trusts which have been drafted in a way that stamp duty would be payable on the full assets if the trustee were changed. Trusts that fall into the hands of someone else on your death etc.
You could get a trust deed for free online or you could spend some money and get some professional advice.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree with you Terryw. I'm happy to pay for advice as there is no way that I can know better than a professional who has kept their knowledge up to date and works with this stuff every day. That said, I'd also rather know as much as possible so that I can understand what I'm being advised and what the potential risks are.
There are plenty of options for companies and trusts at a bargain price. I always think 'you get what you pay for' when I see the prices but I also find some law firms add a premium for the name above the door…
I am happy to let you have a copy of Trust Magic if you drop me an email.
CheersYours in Finance
Richard Taylor | Australia's leading private lender
Trust Magic is a great book and I would recommend it over Renton's for beginners.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hello All
My accountant eventually setup a hybrid land trust ($3300), i really still struggle with it all, but just trust my accountants judgement. I just bought land in QLD and plan to put a house on it, it will be positive cash flow.
I have a wife who works part time and 2 kids, combined salary just under $150K and plan to buy more IPs down the track
I had drama's getting residential lending through CBA and eventually got commercial lending after alot of headaches
But I want to know some more, like teh tax implications, especially for my wife who wants to claim Tax Benefit A & B as I thinking being the lower income earner the asset i belive is in her name. what impacts will it have on us both
Why wuld he choose a hybrid trust and not like a family unit trust with the kids? And is this still going to work OK well considering the extra bank charges I have to pay including a considerable higher interest rate, all these costs and extra difficulties with the trust have been considerable.
I would like to know the pro's and cons of this for my own understanding. Can this be explained to me please as my accountrant is difficult to get a hold of and it be good to get unbiased opinions.
Many thanks
Dean
Just wondering if a Corporate trustee (company name) can be the same as the trust fund if possible eg XYZ PTY LTD trustee for XYZ family trust??
Cunnin wrote:Just wondering if a Corporate trustee (company name) can be the same as the trust fund if possible eg XYZ PTY LTD trustee for XYZ family trust??Yes names can be the same. But it could be an idea to have different names to avoid confusion. I have one trust with the same name as the trustee company and it is a bit confusing when searching documents and computer files etc. When I get statements from the bank I have to think is it for the trust or the company etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
dangermouse99 wrote:Hello AllMy accountant eventually setup a hybrid land trust ($3300), i really still struggle with it all, but just trust my accountants judgement. I just bought land in QLD and plan to put a house on it, it will be positive cash flow.
I have a wife who works part time and 2 kids, combined salary just under $150K and plan to buy more IPs down the track
I had drama's getting residential lending through CBA and eventually got commercial lending after alot of headaches
But I want to know some more, like teh tax implications, especially for my wife who wants to claim Tax Benefit A & B as I thinking being the lower income earner the asset i belive is in her name. what impacts will it have on us both
Why wuld he choose a hybrid trust and not like a family unit trust with the kids? And is this still going to work OK well considering the extra bank charges I have to pay including a considerable higher interest rate, all these costs and extra difficulties with the trust have been considerable.
I would like to know the pro's and cons of this for my own understanding. Can this be explained to me please as my accountrant is difficult to get a hold of and it be good to get unbiased opinions.
Many thanks
Dean
Dean, its a bit late to be asking these questions if you are already purchased the house.
Not sure what the reasoning behind using a hyrbid trust is, especially if the property is positive cashflow.
Not sure what you mean about "the asset in her name" too. Who are the unit holders and who is the trustee? Who borrowed the money and what for?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks TerryW will keep them different to save the confusion then
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