And/or Nominee contracts and Asset protection I have seen a few clients sign contracts for land as “XX and/or nominee” and then want to nominate a trust before settlement not realising the asset protection issues - not to mention the stamp duty issues. The person who enters a contract will be liable if things go wrong - not the nominee. So by entering the contract is your own name that will mean you are exposing yourself and your personal assets. Not a biggy, but still relevant. But more of a potential issue is the concept of a ‘resulting trust’. This will be an event bigger issue where the person has paid the deposit for the property already (such as at auction). A resulting trust is trust based the law of equity. Where A has paid for a property that is in B’s name it will be presumed that A is the equitable owner of the property. This is a rebuttable assumption so can be disproved. But on face value it could be argued that a person A paying a deposit for B has an equitable interest in the property being purchased. This presumption will be even more stronger if A has entered the contract in A’s name, even if there is an ‘and/or nominee’ after the name. If A went bankrupt it is very possible that the trustee in bankruptcy for A (ie the creditors) could argue that the trust owned property really belongs to A. This is because A entered the contract, A paid the deposit and A nominated the eventual buyer. it may even be A that is paying the loan for the trust. This goes whether the nominee is a trust, or a spouse or other family member. Tip - get your structures set up before attempting to buy, and make sure monies are in place.