Family trusts are a great structure for asset protection.
However, in many cases, they are set
up with an individual person as the trustee, which effectively neutralises a
major component of asset protection.
For example, if the trust is sued,
say, by a tenant, the trustee would be at risk, as would any personal assets.
The appropriate trust amendment can
fix this but if not correctly implemented it could trigger a full stamp duty
event.
[note]Family trusts can be a valuable
tool, especially for families who want to share the financial fruits of their
success.
However, it's vital that you access
professional advice before considering whether Family Trusts will benefit your
long-term wealth creation and protection goals.
RealRenta has all the tools that a property manager has but for
less than ¼ the cost of a property manager.
Join now and the cost is less than a cup of coffee a week to manage your
rental property.
RealRenta also has a free vision, so why not check it out.
Jason Gwerder
Saturday, 1 July 2023
