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Do I need to put my home into a trust?

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  • #31
    Indeed Mac.
    I do appreciate reading some of those stories, especially if lots and lots of money has been spent trying to maintain them.

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    • #32
      Protect capital and sacrifice capital gain? Not too bright but depends on circumstances and what/why you need a trust I guess.

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      • #33
        Fanciful anyway speights boy. Banks are not exactly stupid. If they hold a mortgage over a property they will block any attempts to move into a Trust. And if assets are in a Trust then banks will likely not lend on these.
        So who came down with the last shower.

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        • #34
          if assets are in a Trust then banks will likely not lend on these.
          Don't know where you got that idea from it's completely wrong.

          Protect capital and sacrifice capital gain
          The value of the property increases at the same rate whether it's in a trust or in your own name. So what do you mean?

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          • #35
            Originally posted by propertysearch View Post
            Fanciful anyway speights boy. Banks are not exactly stupid.
            I was thinking more of people who hide behind trusts while not paying other non-bank creditors.
            Or family feuds involving millions in numerous trusts.

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            • #36
              Originally posted by speights boy View Post
              ....Perhaps it is time for some real research into how Trusts are actually being used in this country.

              It would be interesting to see how much damage is being caused by people misusing them; or attempting to misuse them.
              On the first point, see the Law Commission website - lots of detail about trusts and their use - result of a huge recent review. Some but less on misuse IIRC. Likely to be law changes as a result.

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              • #37
                Originally posted by artemis View Post
                On the first point, see the Law Commission website -
                Thanks art.

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                • #38
                  Family trusts will be caught in foreigner home-buying crackdown
                  People with family trusts will have a new bit of red tape to cope with thanks to the planned crackdown on foreigners.

                  The Taxation (Land Information and Offshore Persons Information) Bill has been designed to gather information on local and foreign property buyers and will require foreign buyers to get an Inland Revenue Department number and a New Zealand bank account.

                  But the way the bill is drafted would also catch family trusts, accountants say.
                  http://www.stuff.co.nz/business/mone...ying-crackdown

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                  • #39
                    I am about o put my own home and shares of 2 debt free houses in LTC in a trust.

                    Apart from the above , does anyone else see a valid reason?. With both of us in workforce for 30 years and me continuing , I thought I could pay family some discretionary income as I am 80 per cent LTC shareholder.

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                    • #40
                      I have a trust & till date have found it BS...crap. Stay away if you can. Simple people with simple entities don't need it. Its $3k to set up , 1200/annum accounts, 500-700 if you change a trustee. You need to oblige someone to be a trustee or else your trust is a sham etcetc. If you change a trustee you need to get the titles updated. Every year there should be a trustee meeting, resolutions etc.

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                      • #41
                        Trust gives no protection if you have mortgage s plus courts have in many cases penalised people n their trusts in fraud cases

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                        • #42
                          Originally posted by Damap View Post
                          There are many events that can happen to people. Dishonest business partners, "acts of God", health issues, aggressive lawyers, the list goes on. Nothing to do with avoiding responsibility. I would say it is taking responsibility for your family.
                          Originally posted by speights boy View Post
                          The property world is littered with characters who are quick to blame others for their own failure, or greed, or lack of business sense.
                          Weak minded individuals who refuse to accept personal responsibility, and are all too willing to screw over others they owe money to.
                          Both of you are correct.

                          Trust law (which dates from the Crusades of the 12th century) exists to protect assets for the use of beneficiaries. The original term for a trust was "use". See Statute of Uses 1535.

                          It is entirely legitimate for a person with a family to seek to protect the efforts of a lifetime being lost by a single mistake. A mistake moreover which may have been made by a business partner but for which all partners are liable.

                          Unfortunately along with the morally responsible, there also ride the execrable dishonest entrepreneurs. They use trusts to deliberately avoid personal responsibility when their paper-mache kingdoms built with ordinary people's savings come crashing down.

                          Rod Petricivic and that Smith fellow of Goldcorp come to mind amongst many others.

                          SB's cynicism is well founded.

                          Comment


                          • #43
                            i thought a mortgage means the property title (and hence) belong to the financial institution and putting it into a trust may need bank's approval, right? wrong?

                            i believed Bluecoat is right -- put mortgage free properties into a trust to protect against undesirable future event(s)

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                            • #44
                              I like my trust. It is effective at doing what I need - protecting my assets. If my assets were not in a trust I would not take any risks in business. The risks I have taken have created jobs and a huge amount of tax revenue for the government.

                              We need people to take risks. The developers, business people and entrepreneurs out there take great risks which create jobs, income and tax which benefits all. Sure some fail. Sure some are dodgy. But the majority are having an honest crack at doing something that will benefit a lot of people. If they could not protect their hard-earned assets they would not take these risks. It is a good thing that people can protect their assets. It is also a good thing that the courts are pursuing fraudsters who have tried to protect their assets. They need to and will draw a distinction between honest people who have failed leading to insolvency and fraudsters who have knowingly caused others to lose money.

                              There are a lot of other benefits with trusts. One I really like is that it protects assets I want my children to have from their spouses. With de-facto relationship rules the way they are I don't want my kids boyfriend or girlfriend of one year being entitled to half of what I've left to my kids. My trust ensures these assets are protected.

                              Also, if I depart early I don't want my wife burdened with trying to work out what to do with our assets. It's not an area she understands or that she is good with. I just want her to enjoy her life and raise the kids well whilst benefiting from the assets we have built up. The trust sets out everything so she won't have to worry about it and so any possible future partner she may have can't get at it.

                              Trusts get a bad wrap but for me the small cost is worth every penny.
                              “Our favorite holding period is forever.”

                              Comment


                              • #45
                                Originally posted by donthatetheplayer View Post
                                I like my trust. It is effective at doing what I need - protecting my assets.
                                What attack on your assets has your trust endured ?

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