The wealthy use asset protection to stop would be thieves from taking their money.

In Australia the most popular form of wealth preservation is by using a “Family Discretionary Trust” (FDT). In order to use this type of structure you need to understand the terms before commencing creating and finally using trusts. They are a form of business that has significant advantages beyond a normal company structure. The benefits include asset protection, and tax advantages.

Yes they are more complex, and expensive to run, the corporate compliance and ASIC rules are more complex, but you cannot get asset protection AFTER you are hit with a lawsuit. It must be established and operational well before time, furthermore the lawsuit can come from anywhere, anytime.

To prepare yourself, and before you engage any lawyer or accountant (that charges by the hour), spend some time to learn the language they will talk to you in.

It is not that hard. Read my book – accelerating your wealth, (available on the link), or Cashed up. (By Ben Walker)

Also watch these videos so you get a good understanding on the trust fundamentals.

The sad truth is if you only want to be worth lets say “$40,000” it is simply not worth setting up and managing a family discretionary trust. Remain with assets in your name, hope and pray that a lawyer will not pursue you for that small amount. (Sad but true)

HOWEVER, if you want to journey into the millionaire status or beyond Family Discretionary Trust is a must that goes with the concept of ‘at risk or not at risk persons”.

There is lots of misinformation about trusts and corporate trustees, so this will give you a good grounding on their use.

Buy the way – ALWAYS use a corporate trustee for your trusts.

Congratulations on starting your financial educational journey into wealth.

Thanks,

Kel Davis.

PS: to learn more join me on our twice per month zoom educational call, 1^st and 3^rd Tuesday of every months at 7:00 PM BNE time.