"Are Trusts Under Threat As An Asset Protection Vehicle?"

It is generally believed that investments will be protected from individuals' creditors if the trust they are held in is a discretionary trust. The case of Australian Securities and Investments Commission in the matter of Richstar Enterprises Pty Ltd v Carey (No 6) [2006] FCA 814, has shaken this conventional wisdom.

A judge has decided that a beneficiary who has the power to control or appoint a trustee may have an interest in the property of the trust.

The case is not tax based, but is a civil litigation by creditors in Western Australia based around the failed Westpoint group.



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Cutlers Resources have interesting articles

Not sure what it all means for those with DT's, just raised it for awareness..

Interesting.

The comment at the top of the article is also interesting-

The Court's rationale seems likely to be challenged -- but it is an interesting development that professional advisors must monitor.

Click to expand...

Been watching this case for a few months now.

No judgments have been made yet so we are still waiting for what happens in the case.