HDTs: how many IPs in each trust?

[emw]

Anybody have any guidelines here? One IP per trust seems excessive, but having dozens of IPs in a single HDT seems too risky as well. What might a happy medium be, assuming one's not especially likely to be sued?

Thanks in advance!

Ed

 

[DavidMc]

Unsure but I'd also like to know. I'm just about to reach 2.

 

[geoffw]

Old time guru and ex forumite Michael Croft used to operate on a maximum of five properties per trust.

 

[DaleGG]

Hi

There is no proper answer to this question, I am afraid.

In fact, if you ask 10 accountants this same question, you are likely to get about 12 different answers!!

Obviously, the answer will depend upon your circumstances and risk profiles. It will also depend upon whether you buy $50,000 humpies in the bush, or,
$1m+ properties in the inner ring, blue chip suburbs.

As a guide though, we have always worked on about $1m worth of property in any one trust. If your risk of being used is higher, we might review this downwards as part of an asset protection strategy, but, otherwise this is nothing more than a guide.

I hope that this helps

Dale

 

[rambada]

Agree with the $1M per trust. Also look at what you are going to do with the IP in the future, ie is it a development potential - it may be better to put 1 per trust in that case. As DDG said, its the risk exposure and the SANF.

 

[emw]

Thanks, guys, much appreciated!

Ed

 

[Davidr]

.... If your risk of being used is higher, we might review this downwards as part of an asset protection strategy...

Surely though, this would depend on what you were being used for