1. Ownership Option: Individual’s Name
Asset Protection Issues | Equity at risk of claim by creditor |
Tax and Other Issues | 50% CGT discount. No separate structure required |
2. Ownership Option: Joint Names
Asset Protection Issues | Half of equity claim by creditor |
Tax and Other Issues | 50% CGT discount. No separate structure required |
3. Ownership Option: Sole or Joint Names funded by loan from discretionary trusts
Asset Protection Issues | Family discretionary trust is only an unsecured creditor and has no property claim |
Tax and Other Issues | 50% CGT discount. Separate structure required |
4. Ownership Option: Sole or Joint names with registered mortgage to family discretionary trust
Asset Protection Issues | Family discretionary trust is a secured creditor and has a priority claim on property |
Tax and Other Issues | 50% CGT discount. Separate structure required and a relatively low amount of stamp duty is payable on mortgage |
5. Ownership Option: by Children or Extended Family
Asset Protection Issues | Problem if family dispute unfolds |
Tax and Other Issues | May create family and pension eligibility complications |
6. Ownership Option: Family Company
Asset Protection Issues | Asset protection depends on choice of shareholders |
Tax and Other Issues | No CGT discount available Ability to keep income in structure taxed at 30% |
7. Ownership Option: Family Discretionary Trust (with Company Trustee)
Asset Protection Issues | Very good asset protection qualities. Careful attention should be paid to the balances of beneficiary loan accounts |
Tax and Other Issues | 50% CGT discount. Small business concessions. Separate structure required. Income allocated to company beneficiary taxed at 30% (care is needed for choice of shareholders) |
8. Ownership Option: Self Managed Super Fund
Asset Protection Issues | Very good asset protection up to complying pension reasonable benefits limits |
Tax and Other Issues | Relatively low tax rates during both accumulation and pension phases. Benefits preserved |