[et_pb_section bb_built=”1″ admin_label=”Section_2_Text Left:” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”#f7f7f7″ allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off”][et_pb_row admin_label=”Row” make_fullwidth=”off” use_custom_width=”on” width_unit=”on” use_custom_gutter=”off” padding_mobile=”on” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” parallax_2=”off” parallax_method_2=”off” column_padding_mobile=”off” custom_width_px=”768px” custom_padding_last_edited=”on|phone” background_color=”#ffffff” custom_padding=”60px|60px|60px|60px” custom_padding_phone=”40px|20px|40px|20px”][et_pb_column type=”4_4″][et_pb_post_title admin_label=”Ways to Protect Your Assets ” title=”on” meta=”on” author=”on” date=”on” categories=”off” comments=”off” featured_image=”on” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”dark” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” disabled_on=”off|off|off” disabled=”off” custom_margin=”||40px|” title_font_size=”36px” title_font_size_phone=”28px” title_font_size_last_edited=”on|phone” title_text_color=”#00afff” meta_text_color=”#95989a” \/][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n
Beginning property investors are often so absorbed with finding an investment property that will deliver good capital growth and\/or positive cash flow that they forget the very important matter of protecting those assets.<\/span><\/p>\n Protecting your wealth is no less important than building it.<\/span><\/p>\n The term \u2018structures\u2019 refers to – among other things – the way you choose to hold title to your investment property(ies). Most investors choose to buy under their own name – it\u2019s the least expensive and least complicated method, however it can leave your assets open to risk.<\/span><\/p>\n The following strategies vary according to your particular situation so it\u2019s vital that you seek out professional help in setting up your structures to make sure that you choose those that are right for you. <\/span><\/p>\n Following is an overview of the means that investors can use to protect each investment property as they build their future.<\/span><\/p>\n Debt restructuring, asset protection and succession planning options and strategies will be impacted by your choice of structure, so that\u2019s why it\u2019s vital to get it right from the start.<\/span> [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n This is the most common means of ownership. The benefits and drawbacks apply whether the investment property is held solely or jointly.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n <\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/04\/shutterstock_549093019.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” alt=”partnership” \/][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n A discretionary or family trust can help protect your assets from creditors\u2019 claims and save money on taxes.<\/span><\/p>\n There are 4 main types of trusts:<\/span><\/p>\n The term \u201cdiscretionary\u201d in reference to a trust involves the powers that the trustee has in deciding which beneficiary(ies) receive the net income from the trust either annually or at one time, depending upon the terms of the trust.<\/span><\/p>\n The most common type of discretionary trust used is the Family Trust. This kind of trust will have a trustee (which is usually a shell company) which holds the asset(s) in trust for the benefit of the family members (beneficiaries).<\/span><\/p>\n In a unit trust, the beneficiaries\u2019 rights to income and capital in the trust are fixed. In other words, a trustee is required to manage the trust according to the terms therein rather than by his discretion as in a discretionary trust.<\/span><\/p>\n The beneficiaries in this kind of a trust are known as \u201cunit holders\u201d. Each unit holder has a fixed interest in the trust. There may be differences in voting rights, income and capital distribution rights, etc.<\/span><\/p>\n As you might imagine, a hybrid trust takes best of both worlds (unit trust and a discretionary trust) and combines them to create a powerful and flexible tax planning vehicle.<\/span><\/p>\n A testamentary trust is one that manages your affairs after you\u2019ve passed on. <\/span><\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/04\/shutterstock_576500203.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” alt=”trust” \/][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n In addition to the typical home insurances you\u2019ll want to have processes in place that will protect your assets in the event of your inability to provide income for yourself and\/or your family.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Setting up your own SMSF (self-managed superannuation fund) is best done with the assistance of experienced professionals, such as a tax agent, fund administrator, financial or investment adviser, etc.<\/span><\/p>\n The concept is similar to other types of trusts, however this kind of trust is only meant to provide funds for the retirement of the trust members (the beneficiaries).<\/span><\/p>\n You\u2019ll need the following to set up a superannuation trust:<\/span><\/p>\n\n
\nIt\u2019s also less costly if you don\u2019t have to change your ownership structure mid-stream.<\/span><\/p>\nIndividual Name<\/b><\/h3>\n
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Partnerships<\/b><\/h3>\n
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Companies<\/b><\/h3>\n
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Trusts<\/b><\/h3>\n
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Discretionary Trusts<\/i><\/b><\/h4>\n
Unit Trusts<\/i><\/b><\/h4>\n
Hybrid<\/i><\/b><\/h4>\n
Testamentary trust<\/i><\/b><\/h4>\n
Insurance<\/b><\/h3>\n
Superannuation funds<\/b><\/h3>\n