Hi all
I have had many endless readings and discussions with friends over this topic and would love to get everyone's opinion on the matter:
Discretionary Trusts for single people: How to best set up IP ownership in a DT when it is just you, solo, single, no brothers, sisters, wifes, kids, cousins, dogs and cats to be a part of it.
I understand there are no tax benefits to be had in this case but this questions is to do more with asset protection.
By definition a trust is a relationship between the trustee and it's beneficiaries, so wouldn't it all cancel itself out once the sole beneficiary is the sole director of the corporate trustee as well as the Appointor of the Trust? Isn't this considered an 'alter-ego' of the sole beneficiary and therefore rule out asset protection benefits of the Trust?
What are everyone's thoughts on this? Do you put in multiple directors you can trust in the Pty Ltd Trustee? Do you just add additional beneficiaries for the sake of it just so you are not sole beneficiary (even if they get zero distributions every year)?
I have been discussing this with a friend who is single and accumulating assets within a few trusts as mentioned above with the view that one day when he does get married the assets are already set up within the right ownership structure.
Would love to hear everyone's thoughts
I have had many endless readings and discussions with friends over this topic and would love to get everyone's opinion on the matter:
Discretionary Trusts for single people: How to best set up IP ownership in a DT when it is just you, solo, single, no brothers, sisters, wifes, kids, cousins, dogs and cats to be a part of it.
I understand there are no tax benefits to be had in this case but this questions is to do more with asset protection.
By definition a trust is a relationship between the trustee and it's beneficiaries, so wouldn't it all cancel itself out once the sole beneficiary is the sole director of the corporate trustee as well as the Appointor of the Trust? Isn't this considered an 'alter-ego' of the sole beneficiary and therefore rule out asset protection benefits of the Trust?
What are everyone's thoughts on this? Do you put in multiple directors you can trust in the Pty Ltd Trustee? Do you just add additional beneficiaries for the sake of it just so you are not sole beneficiary (even if they get zero distributions every year)?
I have been discussing this with a friend who is single and accumulating assets within a few trusts as mentioned above with the view that one day when he does get married the assets are already set up within the right ownership structure.
Would love to hear everyone's thoughts