If you are a Property Investor, You Should Ask Yourself These Questions …
Does any of the following apply to you:
If you are in ANY of these situations, then not only are you at SERIOUS risk of losing your property in a lawsuit (ESPECIALLY if you are in business), but you will be paying far too much tax.
To put it simply, if you don't own your property in a trust, or use second mortgages, you have minimal or no asset protection.
To learn more about asset protection, go to our Blog, or Click Here or you can read our frequently asked questions on asset protection, Click Here
That may be so. But things change. And if you go into business and decide to move your property into trusts to protect them, at worst, you’ll have massive stamp duty and capital gains tax costs to deal with, as well as a 5 year wait before your asset protection plan works. At best, you’ll have huge costs and taxes to do the restructure, administrative inconvenience in your business, and a 5 year wait before your protection plan works.
So it’s good to get your properties properly protected today.
To learn more about asset protection, go to our Blog, or Click Here or you can read our frequently asked questions on asset protection, Click Here
To put it simply, if you have property in your own name, and have a lot of equity, your properties are at serious risk.
Some say you can transfer assets into a family trust, which you can. However, you will be liable for capital gains tax and stamp duty, as well as having 5 years to wait under bankruptcy law before the strategy can be legally effective.
What you can do, however, is a strategy on second mortgages to protect your assets. To find out more about these second mortgage and other strategies, Click Here
I Have Heard That You Lose Your Negative Gearing Tax Benefits if I Hold my Property in a Family Trust. Is That True?
Yes that is true (subject to two exceptions).
In a family discretionary trust, you will lose your negative gearing benefits because
you have to claim them in the trust, not in your own name.
This is a problem if you are a high income earner.
There are three ways to avoid this:
Speak to one of our specialists further about these options.
Hybrid trusts are basically a unit trust with the ability to have discretionary income units. They are used mainly to get the benefits of protecting assets, and claiming negative gearing deductions which are otherwise trapped in your family trust (hence solving the problem which I have outlined above).
That is, one problem with buying a property in a family trust is you often can't claim your negative gearing deductions. Many accountants say to solve this problem, you buy your property in a hybrid trust. In a hybrid trust, you don’t own the property, you only control it (giving you asset protection), and you’re entitled to get all the income from the property.
In effect, what happens is you can claim your negative gearing deductions.
As the 2008 tax audits showed (which we predicted would happen), many hybrid trusts were disallowed as being a tax avoidance scheme. (Not ALL hybrid trusts had this problem, but many of them did ...) So they’re not something we recommend.
If you have a hybrid trust, check with us, and we can advise if you have a problem.
Yes we sure can.
Click here to find out more about our Accounting/Tax Return Services
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Sammi Lucas
Brilliant service!! Could not have asked for a better start to getting my business structure. This world is still completely new to me and I am very impressed with all the resources Warren and the entire team at Wealth Safe have provided to help me understand trusts
Josh Straw
Living overseas, with no structures or assets in Australia anymore, it simply didn't make sense to keep paying into their tax system. Thanks to Warren and his team, they guided me through the process of setting up stable business structures, and making sure all the lawyers agreements and professional advise was documented. This ensured I met the obligations of the ATO and was 100% legally compliant with my obligations. I researched my options, and felt secure that WealthSafe took all precautions to ensure I was doing the right thing, and benefitting financially at the same time
Bec Robbie
After getting so much conflicting advice from other sources, we were completely confused. Being global business owners, we needed both Australian and international advice, so we reached out to War ren to help us understand exactly how we could structure our businesses to ensure we were well protected. It was vital to us that our future growth and decisions were taken into account. Not only did Warren give us the highest quality advice, and go above and beyond in ensuring we understood the full spectrum of what we were putting in place, but he has always been available for follow up questions, is always happy to get us on the phone for clarification, and he has shared the expertise in his team with us. At first, we have to be honest, we were really concerned about spending money on a consultation. The outcome is although not cheap, it is the best money we have ever spent. We can see significant savings, know we are structured well, have a fully dedicated and professional team behind us and have expert advice available when we need it. We can’t recommend Warren and the Wealth Safe team enough. Thank you
CV from Canada
He is very professional, knowledgeable and creative with his tax planning strategies, and very attentive in answering your questions and working with you to find the best set up for your individual situation. I feel confident working with him and his team, and his level of expertise is outstanding. I wouldn't trust any other company, and would highly recommend Warren Black and Wealth Safe to protect your assets
Brendan King
Although I thought the result I had figured out with my accountant were the most tax effective way I could setup myself up. I was in a position where I would have to pay 31k in tax. Warren found something in how I was setup, which turned my situation around to getting $15k returned to me. It's a $46k turn around.
Warren was able to set me up, and help me look forward to further tax reductions for the future. Also for improved asset protection. Warren also did bloodline wills for me and my wife. Full Review Here
Duncan Mackie
I'm in the mining industry and run a small trading business. I had a tricky situation I had to get out of. I had default on my credit files. I got Warren on the job, he loves that sort of challenge. He didn't even charge me full price, he was excited at the challenge of helping me out. He succeeded and got rid of my default! I get Warren to do all my work now. I would recommend him to anyone
John G from Sydney
I run a small business. I was concerned about safeguarding my assets, myself and my family, and the amount of tax I was paying, but I also wanted to be legal and not get into trouble. Warren was able to provide me with a structure that protected me and my family and my assets and also helped to significantly and legally reduce the tax that I had to pay. Sure I had to pay and they aren’t the cheapest nor the most expensive, however it was well worth the fees paid. I certainly feel more comfortable and secure now
Marco Reeves
They were able to walk me through the whole process, even a tax dummy like myself.... I was very very impressed with the level of service. It was really end to end. They were always there to answer questions, help me complete paperwork and connected me with all the right people. I can't recommend Warren and Wealthsafe highly enough Full Review Here
Pedro Mello
Virna, Warren and the Wealth safe team have provided us with a professional and efficient experience helping us to identify and create a customised financial structure to suit our needs. They clearly have a great deal of knowledge regarding taxation in Australia. Also Warren's seminars have been of great help. We absolutely would recommend their services and are forever grateful for help and advise provided
Janelle Hall
I am a doctor (GP) who was making a good income, however, I was highly dissatisfied with the high amount of tax I was paying, and also feeling a little lost and frustrated in my life in general. I signed up to work with Warren and his team at Wealth Safe. It was one of the best things I have ever done. Firstly, I got quality advice on my tax and was restructured and legally was able to minimize my tax and get on top of it. Secondly, I joined his mastermind and got some personal mentoring, which was significant. It helped me shift a lot of mental and spiritual blocks, and financial imprints which seemed to be blocking moving forward and making major decisions. I learned also how to manifest and create what I wanted rather than what I don’t want, and I have even manifested a wonderful relationship with a very supportive partner. So all round, a great decision. Thanks Warren, and I would recommend Wealth Safe and Warren’s tax advice service and manifestation and imprint clearing to anyone!
Evan Bleker
I worked with Warren Black to open a Hong Kong corporation during the summer of 2018. Warren came highly recommended from my business contacts, who said that he was honest, trustworthy, and very knowledgable. I have to agree. My experience working with Warren was very good. Warren was extremely attentive to my questions, replying with solid answers in less than a day. He also took the time to explain options and rules in detail. When faced with some unique challenges that most businesses don't face, Warren was quick to roll up his sleeves, take action, and even put me in touch with his team so the process could move forward rapidly. This was above and beyond what I expected. To top it off, I found him very personable and really a pleasure to work with. If anyone is looking at a business entity in Hong Kong or Malta, I highly recommend Warren Black.
Warren, Virna and the team at Wealth Safe were fantastic in helping me set up multiple business structures overseas. They were always willing to have a chat on the phone whenever I felt like I needed extra help and they always replied quickly to my emails. The advice and structure set up was tailored to what I wanted to achieve and the whole process was easy and straight forward. I would 100% recommend utilizing their knowledge and expertise in setting up overseas and creating the life that you want to live :) I can't thank them enough.
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