Trustees of a Trust - Liability to be Sued?

[RoyG]

My wife and I are company directors and shareholders of a pty ltd company.

Is it a good or bad idea for the company to become trustee of a trust ?
If my wife or I were to be sued, can someone claim our shares in the company, thus becoming the trustees as the new owners of the company ?

Or would it be just as good as being trustees in our own right, not using the company ?

The trust's assets are mortgage over properties that we own and the trust has given loans to us personally.

RoyG

 

[Tim W]

Trusts certainly have their uses,
but are not always the universal magic bullet tax shelter that people think.

Why do you think you need one?

 

[RoyG]

Trusts certainly have their uses,
but are not always the universal magic bullet tax shelter that people think.

Why do you think you need one?

Hi Tim,
We are not looking for a tax shelter , but asset protection.
WE have unencumbered properties in personal names and to transfer into a trust would be to costly with CGT and SD. Therefore we propose to encumber the asetts by mortgage.
RoyG

 

[Tim W]

That thing where you gift the asset(s) into the corpus,
then get a loan back from the trust, secured by (a) second mortgage(s)?

Sorry, but to me, that structure is little more than
a conspiracy to conceal assets from creditors.
Someone else may be willing to help you,
but I am not.

 

[RoyG]

That thing where you gift the asset(s) into the corpus,
then get a loan back from the trust, secured by (a) second mortgage(s)?

Sorry, but to me, that structure is little more than
a conspiracy to conceal assets from creditors.
Someone else may be willing to help you,
but I am not.

Hi Tim,
There is NO conspiracy to CONCEAL anything. The assets remain visable in the original name(s). All I am doing is to encumber the assets.
You have some weird ideas of concealment or conspiracy to conceal things from creditors , of which there are none at present and none on the horizion. It is merely a form of insurance from possible future litigation. You have got hold of the wrong end of the stick mate.
.