Questions about property investment using a Trust as the investment entity

Yes widen the class out. Best not to name a company because they come and go

 

Would it be better then to go with a trust structure Like this:

Trust Structure :

Type: Discretionary Trust

Trustee 1 : Company (Pty Ltd) B

Beneficiary 1: Person A

Beneficiary 2: (Open) - Spouse and Children of Person A.

Director of Company B: Person A.

Thank you

 

Cant assess whether its a 'good' structure without knowing what the assets are and what the intentions are.

e.g. a profitable business and a negatively geared property would have very different costs and outcomes. If a profitable business a advisor might suggest having the business owned by a company that is owned by the trust. They might suggest against a trust for the negatively geared property.

If the individual is an employee, or owns a business with liability? Complicated family with previous marriages, kids, relatives with special needs or cant be trusted with money? There are other structures that can be created upon death. But the individual has to own the assets when they die.

The devil is in the examples. There is no 'best' structure, only the most appropriate structure for specific circumstances (which change with time).

 

Better in what sense and for who? You need specific legal advice when setting up the trust.

 

Terry_w, What % of people come to you for structuring advice without understanding there own circumstances or what they want to achieve with the structure?

 

100%

 

@Trainee

Seems like your previous reply was deleted by the founder ( I am assuming ) . Not sure why you insist on lecturing when you could simply stay away from the thread ?

I mean this is after all a forum and one of the purpose of the forum is to try to get some info on a general level or perhaps discuss what others opinions are. If one needs a specific advice they would go to the professional to get that.

 

Most people would benefit more from having a deep soulsearch about themselves before talking to a legal advisor for structuring advice. Instead of doing some light reading and then feeling like there concerns have been ignored.

The legal advisor is the expert on structures. You are the expert on your circumstances.

 

What are the top couple of things you wish people had thought about and can gave you an honest considered answer to when seeing you?

 

Will you be paying the 600 consultation fee by cash, credit card or direct transfer.

 

Nothing really because that is what they are coming to see me for. I guess some people read a bit about trusts and get stary eyed about them with unrealistic expectations. The more people read before they seek advice the better as more will sink in and they will be asking more relative questions.