Quick Asset Protection Question

[attrill]

I was chatting to a mate in the UK who has a company that holds the asset (a caravan park) and then a separate operating company that leases the park and runs it, so if someone tries to sue the operating company, they don't actually have any assets.

My question is could this be done with properties held in an individuals name? If one was to set up a company that leased the properties from the individual, and then sub let these properties to the tenants which would put a level of protection between the tenant and the actual owner of the properties.

I am just trying to think of a way of asset protection, without having to transfer assets into a trust and have to pay stamp duty.

Sorry to be long winded but hopefully one of the SSers will be able to tell me if I'm barking up the wrong tree.

Many Thanks.

 

[Piston Broke]

what's the difference between a "quick" question and a slow one?

As for assets, company shares are assets, which has been discussed a few times round here.

 

[Ausprop]

As for assets, company shares are assets, which has been discussed a few times round here.

just one reason why you need a man of straw and an asset holder. usually the wife goes asset holder, you squirrell away what you can in your smsf so no idiot can get silly ideas and the rest you make as diffuclt as possible thru trust structures.

 

[Propertunity]

I was chatting to a mate in the UK who has a company that holds the asset (a caravan park) and then a separate operating company that leases the park and runs it, so if someone tries to sue the operating company, they don't actually have any assets.

This issue in Australia becomes who are the Directors of the company/s? If the operating company gets sued, the Directors are ultimately liable here and if they are also the Directors of the holding (of the asset) company or even major shareholders, then the assets are at risk and no protection is afforded.

As Piston said, the company shares are assets.

I am just trying to think of a way of asset protection, without having to transfer assets into a trust and have to pay stamp duty.

Think harder

Previously discussed on many threads, but if you have assets in personal names and you do not want to pay stamp duty etc to get them into Trust structures, then one form of asset protection is to continue to extract equity whenever it appears and have their mortgages at max LVR.

 

[Rolf Latham]

what prop said.

An if u are really paranoid, get a family member or entity u trust to take a second mortgage behind those high firsts.

A Pty Ltd compnay by def is to limit the liability of the entity to the paid up capital in most circumstances. Then the are negligence issues and personal/ directors guarantees to cover off.

ta
rolf

 

[tubs]

So who owns the company that owns the caravan park?

 

[Ausprop]

So who owns the company that owns the caravan park?

exaclty - I bet the wife owns the shares of the company that holds the assets and the rest can go whistle.

 

[Gools]

then one form of asset protection is to continue to extract equity whenever it appears and have their mortgages at max LVR.

What do you do then with that extracted equity to lock it away out of harms way?

Gools

 

[Propertunity]

What do you do then with that extracted equity to lock it away out of harms way? Gools

What do you do with cash? Mmmmmm
Use it as a deposit to buy another property of course and max that LVR out too