Hey everyone,
I am receiving conflicting views from my lawyers and accountants and it is making it very difficult for me to understand things.
One of the things I have been told by my lawyer is that holding property in a trust won’t protect your assets from creditors if I ‘benefit from’ the property.
Therefore, I have been told that it does not matter what legal entity the property is owned by, as if creditors are chasing any money, my assets would be exposed, regardless of what structures they are in.
My accountant gave the opposite advice, stating that the assets would be protected.
Can anyone confirm this or provide an alternative view as it is becoming increasingly frustrating when the advice from accountants and lawyers do not match up?
Thanks,
Charlie.
Hi Charlie,
Perhaps your lawyer has a view I haven’t heard before, but my understanding of trusts, companies and corporate law is that trusts separate ownership and control. Can your accountant contact your lawyer to confirm their opinion and perhaps provide you with a summary?
All the best,
– Steve
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This reply was modified 1 month, 3 weeks ago by
Steve McKnight.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks for the reply Steve,
I have sought external advice again and the assets are actually protected in a trust. I am unsure of what the lawyer’s view of trusts is, but I am going to take it that it is wrong, especially since so many people buy properties in trusts specifically for that purpose.
Charlie.
Let me guess… that advice came from Dominique Grubisa…. the lawyer NOT entitled to engage in legal practice but who continues to do webinars selling asset protection nonsense that has been exposed in scores of media stories?
Hi Charlie,
Can anyone confirm this or provide an alternative view as it is becoming increasingly frustrating when the advice from accountants and lawyers do not match up?
That should “an accountant and a lawyer” shouldn’t it? Sounds to me like a second opinion from both professions might be a good move.
I am unsure of what the lawyer’s view of trusts is, but I am going to take it that it is wrong…..
Gee, Charlie, alarm bells are going off in my head as I read those last words. To me, it would be more likely for a lawyer to know the laws than an accountant, but then there are some really knowledgeable accountants, and I guess there could also be lawyers who may be still learning…. Has to be second and third opinions surely?? Oh, and a wee reminder – when an accountant does your books at year end, they have you sign that YOU are responsible for THEIR calculations don’t they? Couldn’t that also apply to any advice they have given you?
Tread carefully my friend – those questions you’ve asked are very good ones, so don’t resort to guesses as to the correct answers.
Benny
Thanks Benny,
I received further advice and a second opinion from another lawyer, which did confirm that trusts split asset/control and provide protection from being sued.
I will be more careful in the future when asking these questions, taking chances is not worth it, especially since it could lead to ruin.
Charlie.
Hi Charlie,
That’s good to hear. Oh, and check out my answer to you in the other thread you started. I think you will appreciate what you find there. ;)
Benny
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This reply was modified 1 month, 3 weeks ago by
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