Who should hold personal assets such as insurance policies, holiday homes and investment properties?
It is recommended consideration be given to holding certain personal assets in a discretionary trust because this may: 1. Minimise the risk of these assets being exposed to claims which may arise in the future because of: • the person’s position as a director of a company • the result of personal transactions such as the calling in of a loan • the enforcement of payment of a personal guarantee given to a relative , friend, associated entity or other party; or • the breakdown of a marriage or of other domestic relationships 2. Simplify intergenerational transfers of the assets Who should buy the holiday home? It may be appropriate to hold the family holiday home in a discretionary trust. The family holiday home will not be exempt from capital gains tax on its disposal. If the family holiday home is in a discretionary trust it may be isolated from business risks and, upon its disposal. access to the general 50% discount on any capital gain made on the sale may be available. Alternatively
