Family Trust confusion

[Baby Boomer]

Where is the best place to get advice about the set-up of family trusts? We've been with our solicitor for many years and like him and he administors hundreds of trusts but after reading posts on this forum, I'm concerned about his expertise in this area. His advice so far has not satisfied me that he is up to date in this area. Perhaps he seeks to 'protect' us from too much jargon and intends to educate us gradually. In any event, I feel that I do not have enough information to feel confident at this stage. We have an accountant whom we haven't informed yet about the family trust and he will be of immense help I'm sure. How does one get these two working together? Perhaps I've done this the wrong way around but the sale/purchase going through just before xmas has meant some haste.

The house we have purchased has a income producing flat on the property. We have a light mortgage on the property and are putting the asset into the new family trust. We both work. The rent from the flat will mostly cover the mortgage repayments. The main house will need a $60K renovation starting as soon as council allows and chippies are found. We will be doing the normal gifting regime. We have some cash to cover the renovation. There has already been some confusion between the bank, the mortgage broker and the solicitor over what money is being transferred where and if these professionals don't really know what should go where, who does?

[spaceman]

Here's a couple of good books

Try having a read of these books....both buy the same author...but worth a read IMHO.

Successful Trust Management

Success with trusts

Author is Ross Holmes a kiwi lawyer.....perhaps they are for sale here from the PT bookstore.....or he has his own website.

Good luck

Cheers
Spaceman

[dasphinxter]

Hi Baby Boomer,

I would recommend to you Gilligan Rowe and Associates in Newmarket
I have just recently had my first consultation after discovering them at the property investment expo no so long ago at Greenlane Showgrounds.
I really like how they can advise you on issues both accounting and legal and are experts on structures.
I am using them as advisors only as I have my own lawyer and accountant which are both fine but will use Gilligan Rowe's expertise to get them working closer together.
They do a report which is tailored to your situation to help your existing accountant/lawyer to set up laqc/family trust/trading trust what ever you need.
Otherwise they can set up and run these items for you and all there costs are given to you up front which I really like.

there website is http://www.gra.co.nz

Hope this helps,

Alex.

[xris]

Hello baby,

I would recommend you DO NOT go to Gilligan Rowe. They have taken enough money from poor unsuspecting newbies who just want to set up a trust and receive basic accounting advice. They may know what they are doing but so do hundreds of other accountants and lawyers throughout the country.

Now, how to find these accountants and lawyers. Ask, talk, listen and think: that's about the best advice I can give. There are those out there who do not know what they are doing, plenty of them, and by instilling doubt in your mind your lawyer appears to be one of them.

My opinion is that you need both an accountant and a lawyer. I prefer using an accountant for what you want to do for the majority of things, using the lawyer only for the conveyancing and the liaising with the bank.

xris

[Perry]

Have a look around at Trusts On Line. Might be some help
in getting a greater degree of understanding.

Generally, I think Xris has it right. Accountants - good ones -
have a better grasp of such things than lawyers. Certainly
from the tax angle, anyway.

[dasphinxter]

I would recommend you DO NOT go to Gilligan Rowe. They have taken enough money from poor unsuspecting newbies who just want to set up a trust and receive basic accounting advice. They may know what they are doing but so do hundreds of other accountants and lawyers throughout the country.

Hi Xris,

What is your beef with Gilligan Rowe? The thing is all accountants and lawyers take money from everyone involved in property investment so all are on a level playing field there. Can you advise a better firm and your reasons why? (this is not a challenge as I respect your experience and wisdom, but im generally interested in knowing from the experienced posters who is the 'best', or one of)

Like I said they have been the best so far in explaining correct structures setup to me and their advice seems impartial as they do not care who you have your long term business with.
Basically I want to know what's best for my own portfolio (would assume that applies to everyone), its hard to know who is right or 'most right' when peoples opinions differ greatly.
It aint always easy dodging the 'spruikers' around the place.

Alex.

[Traff]

We had all our structures set up through Gilligan Rowe only because we were seeking advice about something else at the same time. They were VERY expensive but we felt comfortable the structures were setup correctly. We since moved our accounting etc issues away from them and took them elsewhere as we found Gilligan Rowe were more for catering for the larger portfolios where you can justify the costs they charge. We have a fantastic Accountant and Lawyer that deal with all our issues as and when they arise and haven't had any problems so far - they are also reasonably priced. Like Xris says there are other professionals out there you can use but you will only find the good ones through word of mouth (something Xris doesn't like may i add - recommendations).

Good Luck in your search

Shazza

[kalovatt]

We had our Trusts set up by Ross Holmes himself, after doing lots of reading and research. My comments would mirror Traff's comments, it was somewhat expensive to set up, but it was a one-off hit and he sets it up for you to do all the running and gifting yourself, which we do, and hence not incurring any further fees.

I do feel we have the best setup though, and even though it cost us quite a bit, its better than 3 other friends I have who had their trust done by their local lawyer and have subsequently had to un-do the whole thing because of one reason or another, at massive expense.

[geni]

A good book on Trusts

A new book out on Trusts is "Trusts a Kiwi Sham? by Mark Maxwell. It is endorsed by NZ Trustees Association $29.99 - it is written in laymans terms and well worth it.

Geni

[Baby Boomer]

I knew there was more to this than what I was led to believe, thanks for all your comments. I've started with 'Trusts a Kiwi Sham' and may well finish with a professional advisor.

[Glen]

Hello baby,

I would recommend you DO NOT go to Gilligan Rowe. They have taken enough money from poor unsuspecting newbies who just want to set up a trust and receive basic accounting advice. They may know what they are doing but so do hundreds of other accountants and lawyers throughout the country.

Now, how to find these accountants and lawyers. Ask, talk, listen and think: that's about the best advice I can give. There are those out there who do not know what they are doing, plenty of them, and by instilling doubt in your mind your lawyer appears to be one of them.

My opinion is that you need both an accountant and a lawyer. I prefer using an accountant for what you want to do for the majority of things, using the lawyer only for the conveyancing and the liaising with the bank.

xris

I agree, but also work out for yourself whether you actually even need a trust!?

Where do they work best, and at what stage?