Buying through a trust

[HomesForAll]

Hi,
Was hoping I could check what my accountant is telling me. Buying a ppor in Perth. Accountant tells us my wife and I are both in high-risk jobs for litigation and that we need to purchase it through a trust to protect it from some imagined sinister threat.
Here are my concerns:
1. Would the property be liable for land tax - land tax for properties over $2.2mill is lots ($10,000 per year or something) in WA. Am worried that because a non-person 'owns' it, it won't be exempt like a normal ppor in our names.
2. How much is a trust going to cost me over 30 years - I'm not planning on moving ever again.
3. How do you actually do it? Does this have to be organised before I put in an offer or can I just do it prior to settlement.
Seems like a good way to set up a recurring income for the accountant, not sure if it is really that important for me though. I assume if someone's trying to take my house they've already bankrupted me and made me pretty miserable. Never heard it actually happening to anyone, though.
cheers!

 

[D.T.]

1. I'd say yes
2. It needs to do its own separate tax return each year, so budget accountants fees in. Confirm this figure with them.
3. Needs to be already setup prior to offering. You then make the trustee on behalf of the trust offer on the property. The conveyancer similarly organises the title to go in that name. Your accountants intention is likely for you & wife to be tenants in the trusts property. Clarify this with them.

May I ask what professions you and spouse have? If you are both directors of the trustee and one of you get sued as a result of work stuff, what's your strategy to protect house?

Personally (and this isn't advice), I'd have insurance via my occupations industry body to cover any suits. I'd also have a bank mortgage against the property to make it an unappealing target. This may prevent need of some of the above.

 

[Terry_w]

Why is an accountant giving legal advice? What does your lawyer say? Accountants (no lawyers) are prohibited by law from setting up trusts ? WA is one of the only states with case law on this.


Asset protection is not as simple as ?buying in a trust?. How will the trust be structured, what are the terms of the trust, is it a discretionary trust, if so what type, how is the appointor role structured, what about back up appointors, what happens if the appointor becomes bankrupt, structure of the trustee, what about asset protection from family, other beneficiaries, losing control of the trust? What is a constructive trust and a resulting trust, could they apply, how will the deposit be paid, Etc etc.


Theshold for land tax in WA is just $300,000 so whether the land is owned by a trustee or a individual there would be land tax, but the trustee would be assessed separately so land tax coud possibly be saved. What if you don?t buy in WA?

A tax return each fee, so a tax agent fee. If there is a corporate trustee then about $243 for ASIC fees each year rising with CPI. Legal advice every few years. But possible tax savings for the family group.

Yes. Set up the trustee before setting up the trust then set up the trust before the trustee enters any contracts. If you don?t there will be stamp duty consequences, but also asset protection weakening.

It is rare to get sued, but it does happen ? mostly likely it would occur for non work related reasons such as contract disputes, bank loans etc.