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Which investment structures are suitable for you?

An essential part of the financial planning process is reviewing the various investment structures used by a client to hold their assets. For example, should an asset be held under a person’s name (either individually or jointly), or held in a trust, a company or a superannuation fund? The ultimate decision depends on a client’s specific situation and what they want to achieve. For this reason, it’s important to review any existing structures you have in place when your circumstances change. This will help ensure your assets are kept in the most appropriate and/or tax-efficient structure, which could result in a higher level of after-tax income.

Types of investment structures

An investment structure simply refers to the way your investments are legally owned. There are a number of different ownership structures available and one structure may be more suitable than another depending on your circumstances. For example, some are better for maximising after-tax income, limiting liability, or protecting assets from creditors or other claims. Broadly speaking, there are four main types of ownership structures. These are:

– Personal (individual and joint ownership)
– Company
– Trust
– Superannuation

It is rare that a client will only have one structure for their assets. Often, structures are combined in many and various ways in order to meet the needs of a client. The five most common reasons for using different investment structures are tax effectiveness, protection of assets, estate planning, risk mitigation and delegation of control. In this article, we take a closer look at the main types of investment structures and how effective they are for different client needs.

To read about the four main types of ownerships, please click on the following link.

Intralink_StrategyPaper_Which investment structures are suitable for you

If you have any questions in regards to the above, please don’t hesitate to contact an Intralink Adviser on (03) 9629 1100.


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