Thanks for the kind and gentle introduction into the somersoft forum, I must say if your on the welcoming committee it was very sweet of you with your kind words.
I didn’t realise you had trialled the HDT deed in a court of law to see if the asset protection is available. I however believe on this point you are incorrect, as a HDT does have the "Discretionary" powers, the capital within the trust can be distributed as the trustee sees fit, therefore the assets of the trust would be "correct me if I am wrong" protected from a legal attack.
The HDT does cover many different angles and that is why it is so popular, it not only gives you the great advantages of being able to negatively gear, it also protects your assets. If the only reason a person set up a HDT is to get the advantages of Negative gearing, then they didn’t consider the whole picture.
Yes I DO support the HDT however with so many badly written trust deeds out there; yes I believe the whole debate is up in the air. Not everyone was lucky enough to have an accountant or solicitor who uses the MGS HDT deed. So yes it is still a very hot topic and some people could be badly burned because of their choice in trust deed.How can you support it yet the sticking point of the whole debate is "up in the air"??
Come on, at least be honest - the whole point of the HDT is to negatively gear in one persons name then shift any positive gearing into another persons name while avoiding the capital gain implications. Don’t run the "asset protection" rubbish! There are far easier and simpler ways to achieve asset protection than this borderline (at best) method.
Fair enough if you want to run the "pro HDT" argument, until there is definitive direction by the courts at least there is an argument there, but at least call a spade a spade and don’t claim some more pure primary purpose!
I didn’t realise you had trialled the HDT deed in a court of law to see if the asset protection is available. I however believe on this point you are incorrect, as a HDT does have the "Discretionary" powers, the capital within the trust can be distributed as the trustee sees fit, therefore the assets of the trust would be "correct me if I am wrong" protected from a legal attack.
The HDT does cover many different angles and that is why it is so popular, it not only gives you the great advantages of being able to negatively gear, it also protects your assets. If the only reason a person set up a HDT is to get the advantages of Negative gearing, then they didn’t consider the whole picture.