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Hi Geoff, Am very glad you got this treated quickly. I am a consultant optometrist in Melbourne and see these sort of injuries on a regular basis and they can be quite nasty. There are two potential problems - short term and long term. Short term is a feeling of grittiness and...

Hi Skater, I would go with (and have) a trust (with a corporate trustee) as a business structure. If a company makes a profit and you want to distribute it, distribution has to be according to the shareholding. If run through a trust then the trustee has much more flexibilty in distributing...

Thanks for the thoughts Norm. Goodness - I go away for a day or two and this post just keeps on running :) Seems to have taken on a life of it's own! Might be worth keeping some of the HDT information from this post as a future reference/resource (some sort of summary or as a sticky?) -...

Hi Guys, Powerful stuff on HDT's - I suspect as advisors, lenders, solicitors, accountants etc become more and more knowledgeable in this area HDT's will become more commonly used in place of DT's for all the reasons that mike, norman, gordon and nigel have pointed out. A quick chat with...

The last few posts by Mike & Norman have been an education in clearly showing the benefits of a well written HDT deed for getting the tax advantages (with minimal asset protection loss) for investors that are negatively geared. I don't in the least challenge this scenario, and if every tax...

Mry, you need to make a concious choice. I believe most of us buy negative geared property with the intention that some day we will make money from it. :) The losses in a DT are temporary and eventually when you make profit from that property (or another source of trust income) then you use up...

Mry, in a DT you can really only carry forward the losses until there is a profit to offset them against, thats why there is so much interest in HDT's - to try and gain a tax advantage. I'm not the person to detail the how's and why's of HDT 's, there are plenty of experts around here for that -...

I echo that comment Redwing - Dale would have been a very valuable contributor. I am also surprised that Nick has not joined in. Bill

Hi Norm, My comments are specifically related to loans taken out by a person to buy the HDT units that entitle them to an income stream, hence allowing the tax deduction. If they have a documented loan for this (or if they have borrowed to loan a trust money for any purpose) then this flags...

Hi Tony, If you are the director of a trustee company an ASIC search will show this up. Searching the titles office for what properies this trustee company owns I suspect would be a lot harder due to privacy issues. There would be some legal mechanism for allowing such a search I suspect...

Hi captain, If you settle (gift) or sell the camera into a trust that would secure it against litigation risk but the the 6/24 clawback rule mean it's not fully protected for up to 30 months. If it's gifted you cannot get back the personal cost from the trust - if the trust buys it from you...

Coastymike, you are right that a litigant is unlikely to gain any ultimate benefit by a lawsuit. My point however was that in a convoluted situation such as your HDT scenario, they may investigate you in more depth requiring you to pay a solicitor to represent you. I always find that in any...

Thanks Coastymike - these sort of discussions are interesting and good at clearing the air! I am also not a legal expert but a search for person B's assets would easily highlight the HDT units without first discovering the trusts - If he has borrowed money to pay for them then there are loan...

Coastymike, Your points are all valid - from an investment point of view - but you miss the point from a true asset protection point of view. If you APPEAR to own nothing (not even HDT units) you are flying under the radar. If you are ever attacked you have two options - pay money so the...

Coastymike I can only speak from an asset protection point of view. As you mention HDT's appear to have many investment advantages but NOT for asset protection. To get a tax deductible interest you have to have personal borrowings - whether to buy units in an HDT or to buy a property in your...

Redwing the main problem with most people is trying to do too many things with the same structure. For best tax returns for personal investors HDT's certainly have advantages but have weaknesses re asset protection. Other structures are strong on protection but limit your borrowings and are less...

CoastyMike. Ed tends to play it safe with asset protection and tends not to favour hybrid trusts - not because they are bad but more because he feels that users can make more easily make mistakes and compromise their asset protection. Asset protection can simply be advising people who...

Ed's book is not in bookshops or available for direct sale Redwing. It's given to asset protection clients (if an asset risk analysis shows they need protection) to explain asset protection strategies and structures.

Hi Redwing, As Tubs mentioned Ed is very knowlegeable in the tax/asset protection field. He has formed a core of tax and legal experts to produce brilliant asset protection strategies and has trained consultants marketing and distributing his ideas. As bicko and keithj have mentioned I am one...

Steve, The main risk is you being a director of an at risk company - if the company is sued then you (as the director) have some risk of being personally liable and hence risking your PPOR. There are two positive actions you can take to asset protect yourself without changing the title on...