Bob sets up a unit trust online and it all goes wrong

Discussion in 'Accounting & Tax' started by Mike A, 25th Feb, 2020.

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  1. Mike A

    Mike A Accountant Business Member

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    Bob may have made a fatal mistake with his unit trust.

    Do you know what he did wrong ?

    Bob gets advice this time and decides that a unit trust will be the right structure to hold his development land.

    After getting a quote for the setup he goes online and sets up his own unit trust. He puts himself as individual trustee and himself holding 100% of the issued units.

    Bob doesnt realise by trying to save a few bucks that asset protection is the last of his problems.

    He has made an even worse mistake.

    #realestate #propertydevelopment #smallbusiness
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    A clue for the clueless - what is the definition of a 'trust'?