As an additional asset protection strategy, clients who believe they are in a high litigation risk environment can purchase their family home in a specially designed trust and still receive the normal main residence tax benefits including nil land tax and in some instances no additional stamp duty on the property purchase.
In some states a second stamp duty may apply but this cost may be offset by the other advantages. It is critical to note that interest deductions on money you borrow to purchase the property being your home would not be deductible as it is considered private/personal expenditure.
Care must be taken in the drafting and execution of these strategies and in particular the relevant claw back provisions of the bankruptcy legislation, which would require a four-year waiting period from the commencement of the strategy until asset protection is fully available. This time period is the window in which a receiver in bankruptcy can go back to unravel any strategy.
If you would like to discuss your asset protection requirements and how the Main Residence Trust™ may be a solution for you, then please: