Acknowledgement of trust

Discussion in 'Legal Issues' started by JohnPropChat, 24th Jan, 2021.

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  1. JohnPropChat

    JohnPropChat Well-Known Member

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    Scenario: Homer buys shares in his name this financial year. Before the end of this financial year, he sets up a family trust with Homer as a trustee and Homer as a named beneficiary.

    Can he claim an Acknowledgment of trust that the shares acquired were for the trust and never intended for himself?

    2 years from now, he sells the shares as a trustee and distribute capital gains to his partner marge who will be on a lower tax bracket.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no.
    He could do a declaration of trust though.
    CGT and other consequences.
     
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  3. Trainee

    Trainee Well-Known Member

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    Does the family trust relationship only exist from when it is stamped?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No, from when the settlor hands over property to the trustee.
     
  5. JohnPropChat

    JohnPropChat Well-Known Member

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    Can it be argued that the trust exists because it was a verbal trust?
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I doubt it for a discretionary trust.
     
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