Hi people,
I'm a beginner looking into the best structure for asset protection. I've been doing some research into discretionary trusts and hybrid discretionary trusts and wondering which one would be the best? Looking at the poll, lots of people are buying through these two structures. I hope there are some experts out there willing to share their experience.
Also, I heard you can -ve gear into hybrid discretionary trusts. Wondering how this is done?
Say the trust bought a new property worth $100,000. There are $100,000 of existing assets in the trust. To negatively gear into the new property, a beneficiary will borrow from the bank to purchase x of units equivalent to $100000 and get distributed 50% of the income of the trust? What if the existing asset generated more income than the property? How do you portion the distribution?
From asset protection's perspective, if you borrow to purchase units, then the units are under your name again. So does this defeat the purpose of protection under a trust?
Thanks!!
I'm a beginner looking into the best structure for asset protection. I've been doing some research into discretionary trusts and hybrid discretionary trusts and wondering which one would be the best? Looking at the poll, lots of people are buying through these two structures. I hope there are some experts out there willing to share their experience.
Also, I heard you can -ve gear into hybrid discretionary trusts. Wondering how this is done?
Say the trust bought a new property worth $100,000. There are $100,000 of existing assets in the trust. To negatively gear into the new property, a beneficiary will borrow from the bank to purchase x of units equivalent to $100000 and get distributed 50% of the income of the trust? What if the existing asset generated more income than the property? How do you portion the distribution?
From asset protection's perspective, if you borrow to purchase units, then the units are under your name again. So does this defeat the purpose of protection under a trust?
Thanks!!