Asset Protection Tools. Trusts and companies.
I’m often asked about the asset protection tools I commonly use: trusts and companies. Here’s how they work.
In this podcast, I explain that Companies and trusts are simply tools. Just like you have tools that you use in your job, I have tools that I use in mine. And the 2 most common tools of my trade are companies and trusts.
Sometimes I use different types of trusts and there’s heaps of different types (42 actually). But for most people the Discretionary Trust is the one you’ll use.
So What is a company? and What is a trust? I’m sure you’ve heard of a company before. You’ve probably even heard of a trust. I’m about to explain to you in dead-set simple terms what it all means.
A company is a legal entity. Just like you are a legal entity, just like I am.
A trust is also a legal entity. It’s its own separate legal entity. A company and a trust can both do the following things:
They can buy stuff and they can sell stu