Hello,
I’m hoping to get some answers before we jump in and setup the structure.
My wife and I have two very small week-end businesses (partnership). We started the first one (data modelling and web development) when we were at uni so that we could get contract jobs. We still keep that business as we don't want to abandon our exsisiting customers. The other one is something my wife is passionate about (dance) but not much financial benefit comes from it.
Now we want to have some level of protection for our personal assets. All our assets are 50:50.
So we are planning to create a discretionary trust (trading trust) and move both businesses under that trust. Also want a company as corporate trustee. We are planning to have both of us as appointers for the trust and one of them is going to be the director for the company. We both will be the shareholder of the company as well.
Now these are my questions.
1. What will happen to the Trust if we both die (appointers)? Is it enough to update the will with this new trust?
2. What sort of things are compromised by being appointers (both of us), director (one of us) and share holders (both of us)?
3. In a worst case scenario, are we risking everything under the company and half of our personal assets (director's portions)?
I would really appreciate your feedback and answers.
Regards,
devank
I’m hoping to get some answers before we jump in and setup the structure.
My wife and I have two very small week-end businesses (partnership). We started the first one (data modelling and web development) when we were at uni so that we could get contract jobs. We still keep that business as we don't want to abandon our exsisiting customers. The other one is something my wife is passionate about (dance) but not much financial benefit comes from it.
Now we want to have some level of protection for our personal assets. All our assets are 50:50.
So we are planning to create a discretionary trust (trading trust) and move both businesses under that trust. Also want a company as corporate trustee. We are planning to have both of us as appointers for the trust and one of them is going to be the director for the company. We both will be the shareholder of the company as well.
Now these are my questions.
1. What will happen to the Trust if we both die (appointers)? Is it enough to update the will with this new trust?
2. What sort of things are compromised by being appointers (both of us), director (one of us) and share holders (both of us)?
3. In a worst case scenario, are we risking everything under the company and half of our personal assets (director's portions)?
I would really appreciate your feedback and answers.
Regards,
devank
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