structure when investing as an expat

[tamara]

Hi

I was wondering what structure people use when investing as an expat. I understand the benefits of investing through a trust structure but as we do not see ourselves living in NZ in the future do people think that there is a better way?

Tamara

[Marc]

Hello !

We have started to create a new structure based on Dale’s - Trust Magic (for Australia) book that he sells. The book is AWESOME to say the least. What we are doing now - (We live in Melbourne but only buy in NZ) - is create a limited company then get the company to be a trustee of a trust (discretionary - I think that’s the type). The company buys the IP's and any profits that the companies make are distributed to the beneficiaries of the trust via the companies’ trustee link.

This means that your children could receive $$ from being a beneficiary and I think the money going out of the company to the trust is pre-tax.

Now.... this is my understanding and we may not have it right so I want to state here and now that this may not be exactly what Dale's states in his book and what is best of a non Kiwi national. The above statement is to remove Dale from our interpretation o his book and the fact that I only know this second.

In fact what I will do is ask Dale if he could comment on this within our forum. Normally you could ask him directly via http://www.somersoft.com/forums/ of which he is a moderator but I would like him to answer here as it relates to NZ.

Best Regards

Marc

I will send Dale an email now.

[tamara]

Marc

Thanks for your response. Dale has helped us set up our structure in OZ so I appreciate his knowledge. i would be interested to find out what he thinks about a structure in NZ.

Do you recommend someone to set up this structure in NZ?

Tamara

[Marc]

Hello - well we are using the same guys that wrote these articles. They have been great in creating our trust and company.

http://www.propertytalk.co.nz/modules.php?name=Content&pa=list_pages_categories&cid=3

Best Regards

Marc

[tamara]

Thanks for the info. I will be trying to sort it all out in the next few weeks

Tamara

[tamara]

Just another quick question. Did you go and visit them or organise it all from oz

Tamara

[Marc]

Hello !

We have not meet Tony (we live in Melbourne) - in fact we only contact him via phone, fax and email.

Best Regards

Marc

[tamara]

Thanks for that.

Tamara

[LeanneS]

I too have a limited co to hold my properties in as even if you don't live in NZ, bizarrely you are considered tax resident if you own property (silly government)

I didn't know anything about the trust aspect though - would be keen to find out more. What is Dale's book? Is it Australia-specific?

Cheers,
Leanne

[LeanneS]

Martin Hawes has a good book about trusts in general (for NZ) but I don't think he mentioned anything about investment property, just your own home.

[Marc]

Hello !

Dales book is called Trust Magic and its bloody awesome ! Pity I don't get any $$ for saying this ! Its Aussie based but we are using his concepts in NZ.

Here is Dales web site with his contact details ->

http://www.gatherumgoss.com

Best regards

Marc