Reply to: Forming a company for all my assets

[tim123]

yeah but you don't take the assets out.

You do if you want to personally benefit from them. What's the point of growing the value of your company if you can't spend the money that's inside?

you, erm, swap them for better ones, or summat. haven't you read Rich Dad Poor Dad?

No, (I thought that was about how you accumulate the funds, not how you avoid tax on it once accumulated)

tim

[aussielong]

Aussielong, if you are an Aussie as your name suggests then setting up a discretionary family trust is the best structure to hold all your investments, if you have a partner.

...
It also has the advantage that you can put assets in the names of the other beneficiaries so if you ever get sued or anything you can protect your assets.

Does this mean I can put my assets in my (retired) Mum's name? And then if I got divorced they wouldn't be included in what my missus was able to take off me?

[aussielong]

Because

a) the company has to pay tax on any profits.

b) to actually benefit from the items in the company, you have to remove them from the company and you will pay the tax then.

tim

yeah but you don't take the assets out. you, erm, swap them for better ones, or summat. haven't you read Rich Dad Poor Dad?

[SandyDown]

Oh Beaker I really like your new avatar

[SandyDown]

Obviously, don't use a UK-reg company, go offshore (non-EU) and hope for the best. I've told a lot of ex-GFs after our first intimate meeting that I was a previous bankrupt with no assets after - you should see how quickly they got up, put their clothes on and were gone!

This would work to scare most girls,

What do you think is a good thing to tell a guy (to get rid of or to test if he’s really interested in her and not her errrm money ) if the scenario was that the woman told the guy that she has been bankrupt /shopoholic and spends all her money on trivia/ prostituted / served time in prison would they leave? Any suggestions would be welcomed…. However I have a feeling saying ‘I got kids’ is the best thing to say

[beaker]

Why doesn't it work?

How can use of a Trust improve things?

Aussielong, if you are an Aussie as your name suggests then setting up a discretionary family trust is the best structure to hold all your investments, if you have a partner.

The trust allows you to distribute the profits of all the assets in the trust to any beneficiaries (your wife, kids, brother, sister etc). They then pay tax at their highest marginal rate on their trust income. So if your wife earns less than you, you can send more trust income her way and save tax overall. You can also distribute a small amount each year tax-free to your kids (under 18).

It also has the advantage that you can put assets in the names of the other beneficiaries so if you ever get sued or anything you can protect your assets.

I'm not sure if you can legally transfer the money in your UK company to your Aussie trust without paying tax on it in the UK first. I suspect not, because that money would not be considered an expense to your business. You should ask a UK-based an accountant about this. And speak to an Australian accountant about setting up a family trust.

I'm not an accountant, I'm just a contractor learning how to play the game.

[beaker]

no way round it - courts will see straight through that one. REcenly assets in an offshore trust had to be included - so the mrs got an extra £50m(Duffield?).

Also, if you folks help you out and you get divorced then they cant just stop!

If she has kids you will be looking at 70% of your assets lus 50% of income plus child support.

I suggest you dont get married. And if you are married DONT have kids.

Brillo - you seem to be the expert in these matters... is it 50% of your income for life? What happens if you don't work or if you earn less in one year, do you pay less?

[max]

Why doesn't it work?

Companies don't get the annual capital gains allowance, ie: this year £8,800 could be taken tax free.

[SueEllen]

no way round it - courts will see straight through that one. REcenly assets in an offshore trust had to be included - so the mrs got an extra £50m(Duffield?).

Also, if you folks help you out and you get divorced then they cant just stop!

If she has kids you will be looking at 70% of your assets lus 50% of income plus child support.

I suggest you dont get married. And if you are married DONT have kids.

I though the advice from top divorce lawyers was:
a. marry someone as rich or richer than you.
b. don't have kids
c. don't sign a pre-nup
d. get divorced in England and Wales particularly if they are either richer than you or you signed a pre-nup.

[tim123]

Why doesn't it work?

How can use of a Trust improve things?

Because

a) the company has to pay tax on any profits.

b) to actually benefit from the items in the company, you have to remove them from the company and you will pay the tax then.

tim

[BrilloPad]

Funny. Telling them I am a lorry driver does the same. But its also part truth

wasn't there a viz lorry-driver character? The gag being that they are all serial killers - stopped by police and fined for being under their body count quota etcetc...

Is it that which puts them off?

[Sockpuppet]

Obviously, don't use a UK-reg company, go offshore (non-EU) and hope for the best. I've told a lot of ex-GFs after our first intimate meeting that I was a previous bankrupt with no assets after - you should see how quickly they got up, put their clothes on and were gone!

Funny. Telling them I am a lorry driver does the same. But its also part truth

[BrilloPad]

A socialist government will never let a "poor" woman (down trodden oppressed by men) lose out financially to a "rich" man. It's all about "fairness".

Hence pre-nups are powerless. Any court win will be overturned at appeal and cost you dearly.

If you want you believe in a pre-nup, go ahead. You are deluding yourself.

HTH

good post - this is it in a nutshell

[BrilloPad]

Yes they do, some guy won a case just the other day based on a pre nup. Doesnt guarntee anything, but it is at least a factor.

total rubbish - I have an article coming out on hereisthecitynews on Tuesday which will de-bunk this myth.

[BrilloPad]

I'm thinking of registering a company and putting everything through that:

.Investment properties I will buy in 2008
.Shares I will buy in 2008
.Any assets going forward

My reasons for doing this are:

. Pay less tax
. Avoid losing half of my assets if I marry and later get divorced

Is this a reasonable plan? Especially the marriage bit. If i'm technically only an employee/director/(?) of the company, and the company owns the assets - will she be able to get 'er 'ands on them in a divorce?

no way round it - courts will see straight through that one. REcenly assets in an offshore trust had to be included - so the mrs got an extra £50m(Duffield?).

Also, if you folks help you out and you get divorced then they cant just stop!

If she has kids you will be looking at 70% of your assets lus 50% of income plus child support.

I suggest you dont get married. And if you are married DONT have kids.