FAQ 20 How do I protect assets bought outside a trust structure?

We can protect the equity portion of any asset that we own in our own name by adopting an internal debt structure. The first step in the process is to access the equity tied up in the asset by means of a redraw or line of credit facility secured against that asset.

The second step involves gifting that equity to a piggy bank trust ( this trust is a non trading/investing trust and thus is not open to public litigation) At the completion of this step the piggy bank trust OWNS that equity. It is no longer your equity.

Note that the PIGGY BANK TRUST does not and should not own any property. It\’s sole purpose is to accept gifts of equity and provide loans to other entities 

The third step involves the piggy bank trust lending  back the equity to various recipients such as:

a) The original giver of the gift by way of a loan. This loan would be interest free and it would be secured by way of a second mortgage or caveat. Pacific  Law will assist in the provision of documents to underpin this arrangement legally

b) A new investment trust to assist with the purchase of a new investment property. This loan would be secured by way of a second mortgage or caveat. Pacific  Law will assist in the provision of documents to underpin this arrangement legally

Further information in the links below

/asset-protection-secrets/ (Video 1)

/pacific-law-asset-protection-12th-february-2020/

Michael & Sara
Ultimate Coaches

The information supplied is general only and not intended to replace professional advice. As coaches we do not provide advice on what or where to buy or to assess the suitability of a property. We advise students to perform their own due diligence when considering a property purchase.