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Borrowing in a trust

Discussion in 'Finance & Banking' started by Dave, 5th Oct, 2005.

  1. Dave

    Dave Well-Known Member

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    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
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    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.
     
  3. Dave

    Dave Well-Known Member

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    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.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    You don't always need a guarantor - depends on the nature of the finance you seek.
     
  5. Tom&Don

    Tom&Don Active Member

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    Ummmmmm ... so ask him, and let us know eh?