Hi, At a recent session with my accountant, he mentioned he had about 25 trusts... when the banks told him he was too rent reliant or had hit the volume limit he'd start another trust and go again. I didnt really question it at the time because it was away from the topic we were discussing, maybe I'll ask him about it next time I see him. Im guessing he found a way of getting out of the director's guarantee, or using an extremely low LVR lo doc? ANyone know anything about this? Cheers Dave
As an accountant, he would undoubtedly do his own accounting for those trusts ... wouldn't cost him much to do so ... you or I would pay a small fortune in fees to have someone manage all of that for us though.
Sim, I think the accounting cost would probably be worth if it if it'd get you around the limits that most (all?) financial institutions have in place. All of them require the director of the corporate trustee to be guarantor though, right? And that'd defeat the purpose unless he found a way around that. Or perhaps im looking at it from the wrong angle entirely.
