Protecting Assets & -ve Gearing

[agent007]

Will following strategy work? (main idea is assets protection + -ve gearing):

I own units on a Hybrid Trust that in turn owns (it’s the appointor or trustee) of a Discretionary Family Trust?. So, the idea is that I can use –ve gearing while at the same time the property is protected.


Thanks. James.

 

[RichardA]

which entity owns the IP

 

[DaleGG]

Hi

That may not work even though it is unneccessarily complicated structure.

If someone sues you, they will have access to the units within the hybrid trust.

The discretionary or family trust is a completely separate structure independent of the hybrid trust.

Negative gearing advantages are achieved, yes, but, I am not too sure that the asset protection part of the strategy is any stronger. Sorry, I cannot comment further.

Dale

Originally posted by agent007
Will following strategy work? (main idea is assets protection + -ve gearing):

I own units on a Hybrid Trust that in turn owns (it’s the appointor or trustee) of a Discretionary Family Trust?. So, the idea is that I can use –ve gearing while at the same time the property is protected.


Thanks. James.

 

[Homer J Simpson]

Dale,

Let me get this straight.
A Hybrid trust offers less protection than a Discretionary trust?

 

[DaleGG]

Hi

To the individual, yes. To the trusts assets, no.

Dale

Originally posted by Homer J Simpson
Dale,

Let me get this straight.
A Hybrid trust offers less protection than a Discretionary trust?

 

[Homer J Simpson]

Could you explain that in more depth please

 

[sunnywan]

See early post...

Originally posted by Homer J Simpson
Could you explain that in more depth please

Take a look through this thread. My understanding of the level of protection you have will be dependant on the trust deed you buy.