Asset Protectiion - Guarantor Risk

[DaleGG]

Are Trusts always the answer

Reply: 2.1.3.1.1.1.2.1.2.1.1.1.2
From: Dale Gatherum-Goss


Hi Gordon!

Your concerns are real enough. However, the changes to which you refer were first raised about 3 years ago now, and then shelved because they were too hard for the Government to implement.

Moreover, who uses trusts? The wealthy and would be wealthy is the obvious answer. OK, who supports the Governments with donations? Again, the answer is the same.

Bye the way, most of our politicians use trusts to hold their wealth. Do you really think that they'll make changes horrible enough to affect their own wealth?

I hardly think so. Can you imagine the politician going home from a hard day's work and saying to the spouse: "Guess what we did today, dear? We just passed new laws to wipe out a large part of our wealth . . . now what's for dinner?"

Trusts have been around since the days of the crusades and I do not expect much to change.

The changes proposed have been analyzed by many tax experts and the answers were invariably the same. If the changes comes through, they will not be bad enough to change the benefits of using a trust.

Have fun

Dale

 

[DaleGG]

Are Trusts always the answer

Reply: 2.1.3.1.1.1.2.1.2.1.1.1.1.1
From: Dale Gatherum-Goss


Hi Kim!

There is no easy answer to this question because the type and value of each property will have an affect. For example, one hovel of $50,000 is different to one blue chip investment of $2.5m.

A lot also depends upon other circumstances, such as your profession.

I have seen clients who own one property per trust, and others who own say 10 or 12 properties per trust.

I know I haven't answered your question directly, but, I do hope that this helps you a little anyway.

Have fun

Dale

 

[paulzag]

Are Trusts always the answer

Reply: 2.1.3.1.1.1.2.1.2.1.1.1.2.1
From: Paul Zagoridis


I know a few trust beneficiaries who were quite upset that the proposed changes did not go through.

Basically they allowed for more flexibility (e.g. the trust could hold onto some of the profits). At the same time the changes looked like removing a lot of dead-wood, johnny-come-lately scheme promoters who bring unnecessary attention and aggravation.

Actually, now that I think about it... Trusts are bad. Nobody should use them anymore.

[cue mad cackle]. They're mine! All mine!

Oh and for the record:- BBQ octopus is also bad. Tastes like brussels sprouts (you think they believed me?).

Paul Zag
Dreamspinner
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