I’d consider setting up Trusts as advance strategies - if you are starting with investing and wealth building journey - assess your needs first before you delve deep into this. And or talk to a professional. Also, don’t get into analysis / paralysis. The best education always comes from learnt experiences.
It was 2020. The world had slammed its brakes, we were locked down at home, and for the first time in what felt like forever, we weren’t spending frivolously. Obviously we couldn’t even if we wanted to and honestly I don’t have regrets! :)
Amidst the uncertainty, something else started brewing quietly inside:
A serious interest in building our financial future.
It started wild — as it often does.
I dove headfirst into the world of crypto and Mrs. into Stocks:
Candle charts, support/resistance levels, momentum plays.
NFTs, metaverse projects, meme coins, airdrops.
Joining Discord servers, Telegram groups, Medium posts at 2 AM.
Following influencers in Twitter, YouTube. Continuously on the edge of the seat to look for the next right project to make multiple Xs. (I could laugh at myself)
For a while, it felt like we had cracked the code.
Every trade, every token, every new launch — it seemed like we were right there in the thick of it. That’s it - we are going to be make it. That feel still vividly fresh in mind.
There were even moments where I’d get mildly annoyed when my wife wouldn’t let us go all in with our capital into crypto.
But all that came crashing down like a pack of cards when crypto winter hit and or we didn’t knew what we were doing with investing our hard earnt dollars. We lost a sizeable money in the process. The scars, wounds that it left us are still fresh. Mrs had tears. But still I wouldn’t change a thing - the lessons it taught us is worth it!
Looking back?
The scars, wounds are still fresh. But still I wouldn’t change a thing - the lessons it taught me is worth it!
Fortunately - we never touched credit cards for crypto and always kept some boundaries intact.
(If you'd like a deeper dive into how our crypto thesis evolved — that's a story for another day.)
The Pivot: From Crypto craze to building tangible wealth
While the charts flickered day and night, another quieter thought kept tugging at us.
We should diversify. We should build real, tangible assets too. For some reasons Crypto though it had the adrenaline effect - it failed to feel real.
With reasonable incomes, a growing sense of responsibility and ideally to leave a legacy behind for the kids, we decided to explore equity harvesting — pulling out equity to reinvest into property.
That’s when we engaged a Buyer's Agent (BA).
And during one of the early conversations, he suggested something we hadn't really thought about before:
Setting up a Trust.
The logic seemed sound:
If you're planning to build wealth seriously, you should protect your assets like wealthy people do.
Coming from naive financial background, assuming the people whom we talk to always had our best interests in mind - we thought it’s the best suggestions and guess what - We were sold.
Without fully understanding the ins and outs, we trusted the “expert” advice, nodded along, and green-lit the setup.
What we didn't know (and wish we did)
I always reflect back to this quote from Scott Pape:
Remember the other person whom you are talking to. Your fees are their income!
Here’s the thing:
The BA had a preferred accountant who specialised in setting up trusts — and very conveniently, setting up annual tax work (and lifetime billing) along with it.
Was it shady? Not exactly.
Was it perfectly aligned to our personal goals? Not really either.
Looking back, we realised:
We now have trust, we can’t just get rid off it as there are assets like properties under that - which meant we can’t sell / transfer as it’ll trigger CGT and stamp duty. Also, we don’t get the benefit of negative gearing immediately. All the losses are carried forward.
So, is trust a bad option? No! We only wish we knew most of this before setting up Trusts. After we set up - we had to repurpose or pivot to make the set up of Trust work for us.
Trusts are powerful if used intentionally.
Not everyone selling a service has our best interest at heart.
BAs, like any professional, have their own networks to maintain — often with real estate agents and preferred partners — and sometimes our needs can come second.
Lesson learned:
👉 Always be crystal clear on the objectives (Why do you need one / how is it going to help you?).
👉 Always ask: "Who benefits from this arrangement?"
👉 Always understand the full costs (set up cost ~$1500 and ongoing ~$1000 per year) and fine print before committing.
So, what exactly is a Trust?
A trust is a legal structure that holds assets (property, shares, cash).
It separates ownership from control — meaning the trustee controls the assets but doesn't technically own them.
Beneficiaries listed in the Trust are the persons who gets benefit on the earnings from Trust.
Appointers are the admin users in corporate / tech lingo. They get to choose the parties in the Trust set up.
How we repurposed our Trust!
We are leveraging Trust to satisfy two needs:
FIRE goals - with Trust set up if we achieve FIRE - it allow income to be distributed to beneficiaries in a tax-efficient way - which can mean lower taxes if distributed to family members in lower brackets.
Transfer of wealth - When we kick the bucket - it becomes easy to pass on the wealth to our kids in this set up.
Asset Protection - while this is not a priority for a PAYG employee - this does help in the future for any personal legal risks.
What’s our verdict on setting up Trust?
Trust is a good vehicle to hold assets - but go with more eyes wide open.
A trust isn’t a magical shield and asset protection is more a nice to have for our personal circumstances given we are salaried employees.
Also, it comes with annual compliance costs, complexities, and strict rules, CGTs are different than that of personal assets, may not have advantage of taking negative gearing benefits.
So, It's a powerful tool only if it aligns with a clear, strategic purpose.
In our case, with plans to build a portfolio to achieve FIRE, it made sense.
If you’re thinking about setting up a trust:
Get independent advice from accountant or someone who has done it before who doesn’t have a vested interest in it.
Understand the costs: setup fees, ongoing accounting, compliance work.
Know your goals first — don’t let structures dictate your plans.
And always, always stay curious and skeptical — even with professionals.
Because at the end of the day, no one will care about your money / wealth like you do.
Questions to ponder before getting deeper!
1. What problem I’m trying to solve by setting up a trust?
Asset protection? Tax flexibility? Estate planning? Wealth building for future generations?
2. Do I have — or will I soon have — enough assets to justify the setup and ongoing costs?
Trusts make more sense as your asset base grows — not necessarily on day one.
3. Who will be the appointer, trustee and beneficiaries — and what responsibilities come with that?
Appointer, Trustee decisions matter. Beneficiaries need to be clearly thought through.
4. Have I independently verified the advice I’m receiving?
Seek a second opinion if your trust is being recommended by someone who also benefits from its setup.
5. Am I ready for the extra complexity, record-keeping, and compliance that a trust requires?
Trusts are powerful, but they’re not “set and forget.” Be ready to maintain them properly.
So, what do we have in our Trust?
Well, while it’s personal - we do hold Shares and Property in it.
Decision Tree for Trusts!
Assuming you’ve worked through the initial arguments and most importantly your Mrs and you are in alignment with setting up Trust. Now, here is a decision tree for you to go through!
None of these are financial advice - this is just our journey being captured. I’m also writing these from a learnt experience combined with our persona circumstances. These may be completely different to that of yours. Consider your situation and do your own research when you are embarking on this journey.
Next steps
So, you are convinced that you need a Trust set up - where to from here - talk to an accountant and he will be happy to set you up. If you need a reference for one - I’m happy to share mine. Hit me up!
