The Equity Bank Trust™ structure and relevant agreements were developed by Chan & Naylor for improved asset protection to assist clients with a more substantial asset base including properties.
The Equity Bank Trust™ (EBT™) takes on the role of a lender and places a second mortgage on your assets, thereby reducing your equity to nil. It is your equity that a lawsuit goes after not the asset, so the preservation of your equity (net wealth) is the primary consideration in asset protection.
No CGT or stamp duty on the assets is triggered. Depending on the second mortgage documentation there may be stamp duty on the mortgage document that is a small percentage of what would be the case on the asset.
If you would like to discuss your asset protection requirements and how the Equity Bank Trust™ may be a solution for you, then please: