Sam Saad

Good point, Craig.

One of the reasons why people are restructuring their assets is the current economic climate is quite uncertain at the moment.

So people are doing everything they can to try and protect everything they have.

One of the biggest drivers of that is the fact that there's increased interest rates going on in Australia at the moment where they're flying through the roof.

So people are predominantly restructuring to make sure that they can protect their businesses and make sure their cash flow keeps coming in.

And secondly, and probably most importantly, is to protect their home, their family home, make sure that that's isolated from anything else.

And if there is any collateral damage, that doesn't get affected.

Yeah, that's right.

And sometimes people think about this a little too late.

When everything comes falling down, they start to think about it.

By that time, you don't really have the chance or opportunity to make sure you've got the necessary things in place to protect that home.

People are doing a few things at the moment.

One of the things that they are doing is usually they have one party in the relationship who is running the business.

So what they often do is either move the family home into their spouse's name who's not the active one or person that's in the business.

That allows a bit of separation from the business to the house.

On other occasions, they're also setting up separate companies for different investment purchases so that if one of the properties doesn't go as well as they expect it to, it won't have the collateral damage that it does on the other properties or the other investments that they have in place.

And one of the final structures that they're doing is that they're setting up trusts to make sure that assets are protected within that trust structure so that in the event things go down, those assets can't be accessed.

Look Craig, there's a few things that you need to consider when transferring to a related party.

One of the first things is because it's not an arm's length transaction, you need to make sure that there's a valuation in place.

You can't just transfer it to a related party without having some consequences of things such as stamp duty.