Hello,
This topic came up in the middle of another thread and I thought I'd bring it up here. Let's say I want to borrow and access negative gearing benefits, so I don't really want to invest/borrow through a family trust. But asset protection is still an issue since my wife is in a "high risk" profession. So my wife and I choose to invest in my name only since I am extremely unlikely to ever be sued. Does that mean that any loans we take out for investment purposes should also be in my name only??? Or is it still OK, from an asset protection point of view, to have both of our names on the loan but have the assets in my name only???
I've been told by an accountant before that borrowing money and then giving it to a trust can still leave you open to having to cough up the money to creditors one day in the event of being successfully sued.
Considering this, it then seems logical to think that if we borrow money in the names of both myself and my wife, buy property/shares in my name only with the loan, then creditors could have a claim to the amount of money we borrowed in her name, even though they can't get at the investments themselves.
Thanks in anticipation of any replies.
John
This topic came up in the middle of another thread and I thought I'd bring it up here. Let's say I want to borrow and access negative gearing benefits, so I don't really want to invest/borrow through a family trust. But asset protection is still an issue since my wife is in a "high risk" profession. So my wife and I choose to invest in my name only since I am extremely unlikely to ever be sued. Does that mean that any loans we take out for investment purposes should also be in my name only??? Or is it still OK, from an asset protection point of view, to have both of our names on the loan but have the assets in my name only???
I've been told by an accountant before that borrowing money and then giving it to a trust can still leave you open to having to cough up the money to creditors one day in the event of being successfully sued.
Considering this, it then seems logical to think that if we borrow money in the names of both myself and my wife, buy property/shares in my name only with the loan, then creditors could have a claim to the amount of money we borrowed in her name, even though they can't get at the investments themselves.
Thanks in anticipation of any replies.
John