So... I'm off to Dymphna Boholt's day tomorrow

The @Bran that wants whichever dream more.

 

C-mac - how does she profit from talking up asset protection? Does she set up trusts by any chance?

And don't believe a word of it without further research.

 

@Terry_w that was one part she didn't disclose any revenue-creation from. She did mention later on however that she has a team of lawyers, accountants etc. that she refers her students to, across all states and territories. She said that she personally doesn't do any work as an accountant anymore (however, it's likely that some of her employees, do).

In that instance, as owner of the company she'd be personally profiting from her staff conducting asset protection work for her clients, I suppose?

 

surprise surprise recommends 1 trust per property, overkill

 

please don't get suckered into the trust stuff, she has been spruiking this for years it's BS absolute overkill trust structures, complicated and costly and not necessary, and more money in her pocket.

find a good accountant and you will save money. Why would you believe someone who rips people off, this is another revenue raiser.

scare mongering is part of this strategy, you definately will need it, the old we are the second highest litigation co in the world... heard it 10 years ago

 

That reminds me - the person who signed up for the 6k course apparently were thinking about trusts etc...I was like, but it's not really needed yet - you own a PPOR only right now.....fell on deaf ears

 

Bran, if you gather up these 2 investing and medicine Brans and any other Brans that might be lurking around, I'm guessing there might be a big and profitable business idea coming your way. Maybe like:-

All-Bran Homepage | Kellogg's All-Bran High Fibre Cereals

Happy to accept a spotter's fee...

 

@MTR I somewhat suspect one trust per property (which is what she stressed so much) is a bit overkill.

But for someone who (for example) has amassed multiple properties in their portfolio (i.e., 10, 15, 20 etc.) and has it all held in thier personal name only, this could be quite high risk, no?

 

What are your chances of ending up bankrupt?

 

Putting things at the beginning in your own name for some does work but if you ever want to transfer it to a Trust you then need to pay stamp duty. So for some people with an agressive strategy it may well make sense to go with Trusts from the beginning.

I use Trusts but the asset protection stuff is only part of it. It's a multi faceted approach for asset protection + income distribution + land tax minimisation + tax minimisation

 

Can you elaborate a little please Terry? Is she overkill on asset protection?
Cheers,
Keen

 

Well, her book is riddled with errors and misunderstandings. She is not a lawyer so hasn't trained in the laws known as 'equity', doesn't mention the conveyancing act, mentions the bankruptcy act only in passing and doesn't even discuss resulting trusts or constructive trusts from memory. I haven't been to her course though so it may be different.

And then there is the overkill aspect. I have only seen about 5 people ever go bankrupt in my 15 years of interest in this area. Bankruptcy is not so common. I have only heard of a few other cases of people getting sued and not ending up bankrupt.

I only know of a handful of cases where a tenant has sued an owner of a property for a large negligence matter. This would be even a more remote risk to ending up bankrupt. So having one property per trust for asset protection is extreme overkill, unless perhaps they are expensive properties and/or for land tax reasons.

The bigger risk with having assets in trust is losing control - before death, but mainly after death.

 

Raises hand...

 

For property I agree. I hold a property in a trust.

I have a client with a network approx $50m who we have set up at least 40 trusts just for property (not including the trading business structures).

I know in other states the land tax laws are different but in vic trust structuring can be cost effective if you are continually purchasing and holding and wish to avoid land tax.

Typically I see approx 2 properties per trust, again depending on the land value involved. But 1 per trust may be overkill.

End of the day a trust is a structure and careful consideration should be taken when selecting the correct structuring method to suit someone's circumstances not only at that point in time (negative gearing losses quarantined issue for example) but also and more specifically for the future, what is the end game..
I hear clients weekly say to me "I need a company or I need a trust"..

Many accountants will run off and order it and send a chunky invoice to the client.
To me this is transactions accounting, fee for a product..

Usually after an hour conversation the end result looks much different to what their initial suggestion was. Sometimes with no resulting structure at all.. Eg remaining a sole trader for some time until transitioning into a trust/company.

There are 400 ways to skin a cat..

My advices I members is this:
A structure may be expensive to set up and manage, however selecting the wrong structure and dealing with whatever legal/taxation issues arise down the track is usually more expensive and time consuming than the initial cost.. So if your accountant is savy don't just give him instructions over the phone, sit down have a coffee with them and thrash the idea out.

 

What does All Bran do then?

 

Keeps you out of @Bran office

 

They are both on the same page.

Ha ha. SNAP!

 

kick backs

mortgage brokers
JV partners
accountants
mentors with no track record
USA mentors

there must be more, but that's a pretty good start

 

When went I found some of the information interesting, until she finished talking about trusts. She was drawing on a white board with all sorts of diagrams about setting up multiple trusts whereby she ends by saying 'you have to remember this and this and this and this and that and that', in the meantime joining all the diagrams she has on the board. The board was a confusing mess after this and basically so was everyone in the room. Conveniently she then finished by saying how there's too much to know and basically she can sort through all that for you.

At the end of the day she played a video with people's success stories and motivating music. I'm sitting there watching around the room at everyone looking for who was drawn in and who wasn't. Sad to say it looked as though a lot of people were driven by emotion after that which was reflected by the lines to sign up to her courses.

Overall nothing wrong with going once but I hated the ridiculously sales pitch. Even though it was obvious to me I couldn't help but think that people were blinded by their personal situations to see through this.