[Podcast] What is the best structure to buy your property in, yet protect and pass on your wealth, with Ken Raiss

Property investment may be simple, but it’s not easy.

It’s simple if you follow the rules and the right strategy, but it’s not easy because there are so many moving parts, and most people don’t even recognize that. My Podcast #218 Asset Protection 03

Successful property investment requires the collaboration of a team with expertise in property, finance, tax, the law, and financial planning. If you’re a regular listener, you’d know I try to give you a mix of all of those things to give you a holistic overview of property investment.

Today’s episode is no different.

I’ll be talking to Ken Raiss, my business partner at Metropole Wealth Advisory, about the best ownership structures for property investment.

After that, I’ll share my mindset message with you.

Highlights from my chat with Ken Raiss:

What are ownership structures?

They’re a way of controlling your assets without owning them.

It’s a way to get all of the benefits of having them, like wealth and the ability to pass assets on to your children, without actually owning them.

They give you a better way to manage cash flows, tax, and asset protection while separating you from the asset.

People’s lives and circumstances change. So even if you already have your portfolio and structures in place, it could make sense to change it now, depending on your circumstances.

Types of structures:

In general there are Companies and Trusts They’ve both been around for a long time, but they’re now coming into use by ordinary people.

Companies are very regulated. They must meet the minimum regulations set by the government.

There are no government laws or rules about what needs to be in trust. Trustees may hold the cash, but they have a legal obligation to use it the way that the trust says they have to use it.

Trusts have lots of flexibility concerning who you can give it to and what you can use it for.

Benefits of using a trust:

  • A more efficient way of distributing cash flows
  • Be able to manage their own tax affairs
  • Better control and management of the estate on death
  • More flexibility
  • Asset protection

Common mistakes people make when using structures: Testamentary Trust2

  • Setting up a company, particularly for a business, then becoming the individual shareholder
  • Setting up a company when trust would be more appropriate
  • Setting up a trust when you’d be better off with a company
  • Getting the wrong type of trust
  • Selling a property from a trust in such a way that the depreciation is added back to the trust once or twice
  • Failing to take the trust’s end date into account

Links and Resources:

Michael Yardney

Ken Raiss, director Metropole Wealth Advisory

Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here

In turbulent times like this why not get the team at Metropole on your side – find out more here

Get your own copy of What Every Property Investor Needs To Know About Finance, Tax and the Law.

Some of our favourite quotes from the show:

“Before people panic too much, there are things that can be done to amend trustees.” – Michael Yardney Trust

“Many trusts have very broad definitions of who beneficiaries can be.” –Michael Yardney

“I guess one way of summarizing the habits of successful people could be: successful people start before they feel ready.” –Michael Yardney

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Michael Yardney

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


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