Liability - Sell IP to remove from personal names?

We have a rundown IP in a great suburb in a regional Vic. We'd like to build two townhouses on the block. I'd ideally like to keep both and rent them out because it's still got plenty of growth potential.

BUT, this block is in our personal names and we've since started a business (setup via a trust with corporate trustee - but still, there is potential for liability, right?).

Should we use this as a chance to sell the two townhouses and rid them of being in our personal names?

Thank you for your time.

 

that is something you need specific legal and tax advice on.
It sounds like you are thinking about asset protection?

 

[QUOTE="It sounds like you are thinking about asset protection?[/QUOTE]

Correct

 

merely transferring to a trustee will not in itself provide much asset protection, it has to be sold at market value and then you have the cash - and corresponding asset protection issues.

What would do you with the cash?

 

Is the stamp duty & possible CGT liability greater than the risk that you are protecting?

 

Correct. We would sell both townhouses on the market. We would then hope to buy two new properties within our investment trust (this is a different trust used for the business).

 

I think you missed the importance of my question.
You would buy? Or trustee will buy?
How will trustee get the money

 

There will also likely be GST issues here. It certainly sounds like its all elements of a enterprise. And CGT wont apply to the profits.
I would be considering the property tax advice and then seek legal advice concerning the expected reinvestment afterwards

 

Thanks. This is very useful. I'll start reading up on the GST/enterprise thing (early reading shows we would fall under this category). Once I understand a bit more, I'll get some advice. What kind of lawyer am i look for? Thanks!!

 

A Structuring Lawyer!
(I am not taking on any new law clients anymore)

 

Many lawyers who focus on property matters will have structure experience etc.