Wednesday, April 25, 2012

Family Trust structures do not have to be complicated

I meet with a new client who thought his business structures were very complicated and had trouble understanding what his accountant had set up for him. 

 The first question I asked before even looking at the structures set up was: What are your goals?  What do you wish to achieve?

As a small business owner, they work hard so the main dream was to build up a direct investment portfolio that can one day provide for their children.

Owning several small businesses, the accountant had set up the structure as two separate family trusts each with a company as the corporate trustee for these trusts as well as another separate company operating a third business.

Working with the accountant, I fully understood the tax efficiency and asset protection reasons for the business structure.  With the help of the white board, I was able to step the client through the structure so that they fully understood the importance of the asset protection and the ease of tax efficiency.

We then devised the strategy for this client to direct the net profit funds to the correct entities to ensure that they can build their direct investment property portfolio.

The role of the accountant is to set up the business structure however their role is not to delve deeper into what the overall picture is that you wish to achieve.  In this example, the accountant never knew that these clients wanted to build up this direct investment property portfolio so was not aware of the best solution to suit the client’s needs.

My role as the financial adviser is to ensure that you utilise the structure to the best advantage for your goals and dreams.  Only your financial adviser looks forward towards the “big picture”.


  1. We can be productive in many ways. I hope that we can continue doing business with our own ways of dealing it with other customers. Real estate business allows you to interact with other people.

    Real Estate Investing

  2. We have to assure that our business will be on process towards our success. Assuring that we are on the road to glory of succeeding in real estate business. We have to ensure that our strategy for our business is well planned and working.

    Real Estate Investing Australia

  3. Are you planning of migrating to Australia for a better job opportunity? You must prepare a quality CDR maintaining accuracy and efficiency. Hiring a professional CDR report writing expert is a clever idea, as you may not have the exact level of proficiency required to modulate such reports.

    Professional report writers adhere to all the rules and regulations as imposed by engineers australia skills assessment of migrating engineers. With years of experience, these writers are quite acquainted with the CDR-guidelines and fully-understand the intricacy of documenting a CDR.

  4. i-LEND is an online marketplace connecting borrowers and lenders for loans. Although i-LEND verifies credentials of registered users on the site, it does not guarantee any loan offers by lenders nor does it guarantee any repayments by borrowers. Users make offers/loan requests at their own discretion with the understanding of the risks involved in such transactions including loss of entire capital and/or no guarantee of recovery. Please read our Legal agreements to understand more. Read more- i-Lend is India’s Leading Online Personal Loan Market Place