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How to choose the right ownership structure for your investment property

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Your Investment Property | 11 Jun 2015, 12:00 AM Agree 1
Having the right structure will help ensure you protect your investment while saving on tax at the same time.
  • Azza | 20 Nov 2018, 09:09 AM Agree 0
    Does the family trust offer complete protection? Can a bankruptcy court take over the role of Appointor or take over the shares in the corporate trustee and hence have control of the trust assets?
    • David | 19 Apr 2019, 05:12 PM Agree 0
      The short answer is "No".

      The Bankruptcy Act does have provisions that can set aside a transfer of property to a trust or other entity if the intention of the transfer was to avoid that property being or forming part a persons assets which are the subject of bankruptcy proceedings.

      Specialist legal advise by a professional in this area is advisable.
  • David | 19 Apr 2019, 04:41 PM Agree 0
    There are particular rules and powers that are available in bankruptcy proceedings that can effectively "In certain circumstances" treat assets within a trust, say a property, as being owned by the previous owner, if there was an intention to place the property in the trust to avoid potential loss of part of that property as a bankruptcy proceedings were foreseeable.

    Specialist legal advise by a professional in this area is advisable.

    Realizing that if you are placing a property in a trust, that you already own, it must be a legal transfer, which will incur stamp duty, and trigger capital gains tax on the disposal.

    Again, specialist legal advice by a professional in this area is advisable.
  • David | 19 Apr 2019, 04:44 PM Agree 0
    In a bankruptcy proceeding, the short answer is "No".
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