{"id":4215,"date":"2015-04-28T01:00:46","date_gmt":"2015-04-27T15:00:46","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=4215"},"modified":"2015-04-28T01:00:46","modified_gmt":"2015-04-27T15:00:46","slug":"how-trusts-protect-landlords","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/how-trusts-protect-landlords\/","title":{"rendered":"How trusts protect landlords"},"content":{"rendered":"<p>&nbsp;<br \/>\nIn today&#8217;s show together with\u00a0<strong>Ken Raiss<\/strong>, from Chan &amp; Naylor, we answer your question:\u00a0\u201c<em>My landlord insurance policy covers me up to $20 million in liability, I can\u2019t think of any unfortunate situation where all of that would be used it. Is asset protection merely an additional feature of trust structures rather than a predominant reason to set one up?<\/em>\u201d<br \/>\n&nbsp;<\/p>\n<h4>Transcript:<\/h4>\n<p><b>Kevin:<\/b>\u00a0 A few weeks ago, we answered a question from Dimitri to do with trusts, and following that, I received an e-mail from Will. Will, thank you for that, a follow-up for Ken Raiss, who will be with me in just a moment.<br \/>\nThe question for Ken comes from Will, and it says, \u201cRe purchasing investment property in my own name versus a trust. On today\u2019s show while answering Dimitri\u2019s question on a similar topic, you stated there\u2019s another issue, as well: asset protection. If you have too many assets in a trust, then if one tenant sues, it could be a house of cards that falls down, and all your assets then in that one trust are at risk.<br \/>\n\u201cMy landlord insurance policy covers me up to $20 million in liability, I can\u2019t think of any unfortunate situation where all of that would be used it. Is asset protection merely an additional feature of trust structures rather than a predominant reason to set one up?\u201d<br \/>\nKen Raiss joins us from Chan &amp; Naylor. Ken, thank you again for your time.<br \/>\n<b>Ken:<\/b>\u00a0 No, it\u2019s a pleasure, Kevin, and great question from Will.<br \/>\n<b>Kevin:<\/b>\u00a0 It is indeed. Let\u2019s step about answering it for him.<br \/>\n<b>Ken:<\/b>\u00a0 Trusts really have four main benefits. Asset protection is one, because you don\u2019t own the assets. Flexibility, cash flow, and estate planning are three other quite significant reasons. You should also have a company as a trustee of your trust, not the individual \u2013 because for asset protection reasons, the company closes the loop.<br \/>\nWhile a lot of people say they have insurances and they hope that their insurance cover is enough, we have to be careful: will the insurance company pay off? Because if they believe part of the responsibility lies with you, then they won\u2019t always cover it. Such as you need to do a repair, you may not do it in time, your agent may not tell you in time, or there could be issues with fire.<br \/>\nA lot of people sometimes are underinsured. If their property burns down, burns down the property next door, they\u2019re up for the difference if they\u2019re underinsured. There are many, many reasons why insurance cover wouldn\u2019t be enough, so that\u2019s one of the reasons then people have limited assets in a trust, just in case.<br \/>\nBut what you can do is you can protect just your equity in a trust by doing things such as the Equity Bank Trust.<br \/>\n<b>Kevin:<\/b>\u00a0 What is that again, Ken?<br \/>\n<b>Ken:<\/b>\u00a0 It\u2019s the Equity Bank Trust. What we do is we shift all the equity from either your personal names or from trusts into a much more secure area that carries normally no liabilities. When you do that, you get asset protection without triggering the normal taxes such as capital gains and stamp duty. We transfer the equity, not the physical asset.<br \/>\n<b>Kevin:<\/b>\u00a0 This is something that can be done through Chan &amp; Naylor?<br \/>\n<b>Ken:<\/b>\u00a0 Absolutely.<br \/>\n<b>Kevin:<\/b>\u00a0 We\u2019re hearing some horror stories with rental units, too, where tenants fall off decks or broken steps and so on. That liability issue that you talk about there, Ken, is a very, very real one, isn\u2019t it?<br \/>\n<b>Ken:<\/b>\u00a0 Correct. I think particularly in today\u2019s environment, we shouldn\u2019t assume the insurance companies will always pay.<br \/>\n<b>Kevin:<\/b>\u00a0 Yes, indeed.<br \/>\n<b>Ken:<\/b>\u00a0 They\u2019re looking for reasons, and sometimes they can just drag you through the courts and even if you\u2019re right, the mere pressure of finding money in time means you\u2019re out of pocket and you could lose everything.<br \/>\n<b>Kevin:<\/b>\u00a0 No doubt, we will have been an early-warning device for a number of people. If you would like to find out more about this, you can contact Ken Raiss at Chan &amp; Naylor. They\u2019re our trusted advisors.<br \/>\nKen, once again, thank you for answering Will\u2019s question. Great talking to you, as well, mate.<br \/>\n<b>Ken:<\/b>\u00a0 That\u2019s a pleasure, Kevin, and thank you, Will.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; In today&#8217;s show together with\u00a0Ken Raiss, from Chan &amp; Naylor, we answer your question:\u00a0\u201cMy landlord insurance policy covers me up to $20 million in liability, I can\u2019t think of any unfortunate situation where all of that would be used it. Is asset protection merely&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":4217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-4215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How trusts protect landlords - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/how-trusts-protect-landlords\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How trusts protect landlords - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"&nbsp; In today&#8217;s show together with\u00a0Ken Raiss, from Chan &amp; Naylor, we answer your question:\u00a0\u201cMy landlord insurance policy covers me up to $20 million in liability, I can\u2019t think of any unfortunate situation where all of that would be used it. Is asset protection merely...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/how-trusts-protect-landlords\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2015-04-27T15:00:46+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"How trusts protect landlords\",\"datePublished\":\"2015-04-27T15:00:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/\"},\"wordCount\":743,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Kevin Turner\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/\",\"name\":\"How trusts protect landlords - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2015-04-27T15:00:46+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/how-trusts-protect-landlords\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How trusts protect landlords\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. 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