Hi all,
I am in the process of transferring by way of gifting 2 investment properties (basically neutral cashflow) to a family trust with corporate trustee.
In order to protect as best as possible the "alter ego" argument and avoiding the route of appointing an external independent person, I plan the have joint appointors with myself and my brother. Does anyone think this is a sound strategy to provide some good protection despite the Richstar and other case law?
I recall reading somewhere that if you gift assets to a trust, the bankruptcy trustee can still go back 4 years and look/get at assets of the trust, assuming it doesnt fail the "alter ego" test (in which case if it did fail the alter ego test, there would be no time limit.) Is my understanding correct?
Finally, lets say after the properties are transferred/gifted into the trust and interest rates go up, so that the properties become negatively geared thereby creating trust losses, is it possible to personally lend money to the trust interest free who in turn will invest in a term deposit to the extent the losses are utilised within the trust?
Many thanks
Gogo72
I am in the process of transferring by way of gifting 2 investment properties (basically neutral cashflow) to a family trust with corporate trustee.
In order to protect as best as possible the "alter ego" argument and avoiding the route of appointing an external independent person, I plan the have joint appointors with myself and my brother. Does anyone think this is a sound strategy to provide some good protection despite the Richstar and other case law?
I recall reading somewhere that if you gift assets to a trust, the bankruptcy trustee can still go back 4 years and look/get at assets of the trust, assuming it doesnt fail the "alter ego" test (in which case if it did fail the alter ego test, there would be no time limit.) Is my understanding correct?
Finally, lets say after the properties are transferred/gifted into the trust and interest rates go up, so that the properties become negatively geared thereby creating trust losses, is it possible to personally lend money to the trust interest free who in turn will invest in a term deposit to the extent the losses are utilised within the trust?
Many thanks
Gogo72
