LJH Commercial

020 LJ HOOKER COMMERCIAL MACARTHUR 5 Steps to creating an asset protection plan Plan Early Having an asset protection plan in place from the very start is important when litigation arises. If you try to develop a plan during or after an incident or dispute, it will appear as though you’re careless or unprepared as an investor. The law may not take a favourable view of your late efforts or argument. Ownership It might sound simple, but finalising what name the property should be put in is very important from a legal and financial perspective. Changes to the ownership name will result in stamp duty costs that equal tens, or even hundreds, of thousands of dollars. Structure Trusts are a popular way to structure the ownership of commercial property. They can minimise tax and maximise returns on the investment. However, a trust may not keep the beneficiaries safe from litigation if there is an issue. If you own numerous assets, placing them in different ownership structures will limit your exposure in case you are sued. Speak to your solicitor about what structure is best for you. Tenant Agreements There are differences between a Commercial Tenancy Agreement and a Commercial Lease. A lease can be completed by the leasing agent, avoiding solicitor’s fees. However, tenants can be afforded more security with a formally designed lease. This may be an attraction for tenants and result in benefits for the investor as well. Seek Assistance Many of us aspire to the dream of becoming self-made millionaires, but rarely does it happen. Commercial property ownership can be financially rewarding, but it’s also complex. Engaging a multi-disciplined team to assist you will cost money, but it will also keep you safe and improve the return on your investment, as well as its ongoing value.