Personal Loan Structure - Asset Protection

Discussion in 'Legal Issues' started by Abuz, 10th Jan, 2020.

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  1. Abuz

    Abuz Member

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    23rd Nov, 2019
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    Location:
    Victoria
    Hi,

    I bought a property when I was in my mid 20's and a few years later I started a business.
    On advice from my accountant I've set up a Trust to which all future assets/income will be held to help mitigate risk.
    My concern is that the property I bought in my early 20's is under my personal name and not protected. I could transfer the property into my trust but that incurs large expenses i.e. stamp duty and capital gains.

    An option I did think of would be to refinance my personal property with the Trust, so the trust will have an interest as Mortgagee (Much in the same way as a Bank).

    My question is has anyone been in a similar scenario and if so what did you do?

    Thanks
     
    Abuz, 10th Jan, 2020
    #1
  2. Terry_w

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

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    silly taking asset protection advice from an accountant, thats like asking a butcher to cut your hair!

    get some legal advice, but in the meantime see

    Legal Tip 227: Mortgages to Trusts and Bankruptcy Legal Tip 227: Mortgages to Trusts and Bankruptcy
     
    Terry_w, 10th Jan, 2020
    #2
  3. Curious2019

    Curious2019 Well-Known Member

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    VIC
    What type of business do you have? If it’s not a high risk business I wouldn’t worry about needing a trust, the compliance costs will most likely outweigh the benefits unless you have the ability to split income with your partner or other beneficiaries and save more tax than compliance costs.

    If your business is in a company, you have limited liability anyways - just make sure you have public liability insurance or directors insurance.

    High risk fields would be medical - I.e surgeon or anaesthetics, Legal practitioners, Builders etc if you are in one of these fields, get proper legal and tax advice - your accountant is unlikely to be qualified in these areas!
     
    Curious2019, 10th Jan, 2020
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Disagree with that, id say its closer to asking your dentist to diagnose your liver problem :). Its the allied medical assumption sorta thing.


    The perception is that accountants can and do


    Provide Business structure advice
    Credit advice
    Tax Agent Services
    Investment advice
    Financial Planning
    Various forms of Legal advice relating to money
    Wills and Estate Planning
    Bookkeeping
    Payroll Advice
    Employment Law
    Migration assistance
    and much more​



    Many can, most arent licensed in all those areas, but common assumptions is they are. Larger firms DO provide true one stop shops that can cover all the needs, and I expect that this is where the jack of all trades thing comes from - maybe

    Having said that, a tax agent, is a very different animal to a self employed CA or CPA !

    Many times we have conveyancing solis, accountants, planners et al overstep their remit and become obstructionist in what could be a smooth and pain free process for a client and cause major anxiety with what is truly.......... well ...........navel fluff.

    ta
    rolf
     
    Rolf Latham, 11th Jan, 2020
    #4
  5. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
    Australia wide
    Most are not licenced in those area. Credit advice needs a credit licence for example and legal advice needs a lawyer's practicing certificate such as land tax advice, wills and estates.

    I heard from a client the other day that he got legal advice from an accountant who said I am not a lawyer but.... The problem was the client thought the accountant new what he was talking about and believed his incorrect advice. He just mentioned it in passing to me and if he didn't he would have relied upon it
     
    Terry_w, 11th Jan, 2020
    #5