Lawyers asking $4,300 to create some trust agreement documents, can I write these myself?

Hi guys,

As part of a larger tax strategy I am doing, I've been told by my accountant I need some legal documentation. More specifically, I need:

• A loan agreement between myself and a trust #2
• A loan agreement between trust #2 and trust #1
• 2x 'Deeds of forgiveness' for the above mentioned loans.

Now, looking through my trusty copy of 'Trust Magic', in the back there are quite a few different sample minutes that cover many situations, but none specially covering what I need to do. These don't look too complicated to write.

Do you think I could (at least) do the loan agreements myself?


FMc.

 

a minute is just a record of a decision far from a contract or a deed.

If you have the legal knowledge you can write these yourself. But you don't know what you don't know.

 

Go for it. Have fun

Not advice

 

Absolutely! What could possibly go wrong?
Actually, probably a lot. Why not "shop around"?

 

Go for it. Don't even need paper, a post-it will do the job.

 

And why are you making loans and then forgiving them?

 

That seems a bit expensive. They should have it all templated up and just need to make a few changes...

 

FullyLucky is the go to guy for this kind of DIY stuff.

 

I would buy one of each from some dodgey character down at my local pub and then photocopy them.

You will save a small fortune now BUT it might cost you a large fortune later.

 

IIRC you could probably use a white board.

 

Would you recommend a permanent marker be used?

 

It seems this may be part of an asset protection scheme. If you don't seek legal advice it will be ineffective.

 

Debts forgiven ? There is a CGT event for that. But your tax adviser mentioned that I suspect. They did do that?...............

Minutes in a book are nothing like the info you are after. You may be well out of your depth.
Did you get legal advice about doing this ? Tax advice doesnt seem right. Tax advisers cant give legal advice. A deed of release is a serious issue...I wouldnt be playing with matches around the fuel tank.

 

I think the cost is ok if you are getting personal face to face attention, with a human who cares about you and gives insight.

If it is all email and telephone it would be cheaper.

 

"As part of a larger tax strategy I am doing"... you need proper tax and legal advice.

 

I completely agree.

If the fee exceeds the proposed benefit, it may be worth requesting quotes elsewhere. The arrangement may be standard but still needs to suit your circumstances exactly.

 

We were asked to provide advice (and had quoted an hour and a half's time to do so) recently on some similar documents that I assume someone had paid far too much money for following attending some course. The trust deed that was copyrighted from 2012 had basic set out errors, let alone the legal issues with it. Then the loan documents were for 50 years at 0% interest and were accompanied by other interesting "deeds".

It took 2 mins of reading to be able to call the client and advise not to use them and that we wouldn't charge unless they wanted written advice on how bad they were.

 

That ll exclude all lawyers then....... Just kidding Terry

 

Terry is OK I think. I will say nicer things when he pays for my coffee. @Terry_w mate coffee is overdue!

 

Hi

$4300 does not seem to crazy a price for what you have mentioned. But I would shop around for a 2nd quote and if the quote is similar choose who you are happy to proceed with, if the 2nd quote is very different in its nature and price I would then go and get a 3rd quote and then choose.

I have been involved in several loan agreements in the past and "if" my memory serves me right the dearest quote I received for the preparation of a single loan agreement was $8,000!

On other occasions I have seen the cost of a loan agreement come under $1,000 but this was for a very simple loan type agreement.

Regards,

alicudi