Tyla, when was the last time someone sued you? Or even came close? Have you ever wanted to sue someone?
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Never been sued and never sued someone either but came close once. I want to stay away from courts as much as possible.
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Tyla, when was the last time someone sued you? Or even came close? Have you ever wanted to sue someone?
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Yes, and here is where you're assessing probability as opposed to possibility. If you're an employee, your legal risk is lower. If you are going into business, then the risk of legal liability increases. Yes, it will be more costly to structure later on, but you also have to consider the cost of structuring now (in your example, it affects your serviceability).
Never been sued and never sued someone either but came close once. I want to stay away from courts as much as possible.
So to reduce your level of risk, vet ever contract you enter into carefully. I admit that I boought 10 plus houses in the early days without ever readinng a contract. I entered leases without reading anything other than the rent per week. I lent money to people without written contracts.
I understand now that asset protection is a very big area and I'll have to get personal advice. But I believe the more views and opinions I receive, the better it will be for decision making.Its important to understand that your personal situation isnt the same as anyone else. Its dangeorous to assume - My wife always says it makes an a#$e out of you and me. Nothing beats personal advice. But the final decision is yours. You can select or discard advice. Sometimes I have given advice for the client to choose to ignore it. Thats often fine. They know their risks. Its like choosing to be uninsured. Its smart if the property is a dump and there is no debt. Its dumb if its new and there is a huge financial commitment.
- What assets do you have (higher wealth is good grounds for asset protection)
- What are your risks ? (eg a neurosurgeon v's a painter)
- Do you plan to change ownership later ? Might it even be contemplated?
- Do you want to share tax income ?
- Will a high income later bite you ?
- In 20 years might you want your super involved in property ?
- If you were to marry / remarry etc could a change of ownership give any tax benefits ?
- Are you in good health
- Is your income / occupation stable or very volatile?
- Do you have kids who may incur sexually transmitted risk ?? (The greedy GF / BF)
So based on that, would you think we should keep investing in our own names or start planning for discretionary trusts, etc?
I've been making a list of asset protecction strategies or things you can do to improve asset protection and I am up to 260+. I keep thinking of things to add all the time and the list continues to grow.
I am looking forward to it, Terry.
I Could you also elaborate "If you were to marry / remarry etc could a change of ownership give any tax benefits ?", please? Not planning to remarry etc, but what sort of structure could provide any tax benefits under change of ownership?
Thank you, Paul.
Also there is the refinancing principle in a unit trust that would allow the increased property value to be refinanced and be deductible yet the proceeds from the new increased loan coud repay your PPOR...So it can convert non-deductible debt to deductible....
All it takes in early planning.
Paul, I'm totally lost with this one. How could proceeds from UT's refinancing be transferred to PPOR and still deductible? Wouldn't it become "used for private purposes"?