Second Mortgages for estate planning and asset protection.

Discussion in 'Legal Issues' started by Journeyman, 6th Jan, 2018.

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  1. Journeyman

    Journeyman Well-Known Member

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    Hi, has anyone used second mortgages for property held in their own name(s)?

    Who specialises? Who would you recommend talking to?
     
    Journeyman, 6th Jan, 2018
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  2. Trainee

    Trainee Well-Known Member

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    How do you plan on using this?
     
    Trainee, 6th Jan, 2018
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  3. Journeyman

    Journeyman Well-Known Member

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    So, for asset protection and estate planning.
     
    Journeyman, 6th Jan, 2018
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  4. Trainee

    Trainee Well-Known Member

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    Specifically, what entity would lodge the second mortgage? How would it help with asset protection and estate planning?
     
    Trainee, 6th Jan, 2018
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  5. DaveM

    DaveM Well-Known Member

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    DaveM, 6th Jan, 2018
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  6. Journeyman

    Journeyman Well-Known Member

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    Discretionary trust would hold mortgage over equity.
     
    Journeyman, 6th Jan, 2018
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  7. Trainee

    Trainee Well-Known Member

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    Even if you could do it (and I wonder what the individual is getting for it), refinancing would be a nightmare. Why do you need that much asset protection? And how does that help with estate planning?
     
    Trainee, 6th Jan, 2018
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  8. Journeyman

    Journeyman Well-Known Member

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    I think the accumulation phase in our name is almost over. 1 more maybe.

    The rest will be acquired in other entities. So refinancing shouldn't be too problematic.
     
    Journeyman, 6th Jan, 2018
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    We have a bunch of clients that use related entities to have subsequent mortgages lodged for various reasons.

    Generally not an issue for refi or euqity draws - the lodging entity simply offers a mortgage discharge at time of refi and then lodges a new mortgage after the refi et. Is completed.

    Because there is no deed of priority required from the first mortgagee it's pretty simple, with moderate government costs

    Ta

    Rolf
     
    Rolf Latham, 6th Jan, 2018
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  10. Terry_w

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

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    See my legal tips where i have written about these.

    You will need to see a lawyer to get advice on this - property law, estate planning and asset protection advice needed.
     
    Terry_w, 6th Jan, 2018
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  11. Terry_w

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

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    Lol. Becareful as there are spruikers out there promoting a strategy which won't hold up.
     
    Terry_w, 6th Jan, 2018
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  12. Journeyman

    Journeyman Well-Known Member

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    I have not been dealing with any spruikers, just trying to save time in finding the right firm or person to talk to.

    I will look for your previous tips. Thanks.
     
    Journeyman, 6th Jan, 2018
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  13. Terry_w

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

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    Many strategies.

    Want to make sure your gay lover gets your house, or a large chunk of it and not your wife? Then a second mortgage may help. Gift a sum of money to the other entity. They lend it back and take a second mortgage. On death the wife may get the house but it is fully mortgaged to the other person/entity. This may even overcome the family provision laws.
     
    Terry_w, 6th Jan, 2018
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  14. Journeyman

    Journeyman Well-Known Member

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    Hi Terry, thanks for your response. I waded through some of your tax tips earlier, and the legal tips just now. I didn't spot a specific reference to second mortgages for asset protection etc... but did read about asset protection and different types of trusts. Is there a specific post I should be looking for?

    Thanks for all your efforts in this forum.

    Roy
     
    Journeyman, 6th Jan, 2018
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  15. Terry_w

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

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    There are a few on gift and borrow back strategies.
     
    Terry_w, 6th Jan, 2018
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