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Any issues with selling an IP in a Family Trust to myself?

Discussion in 'Accounting & Tax' started by DavidMc, 29th Aug, 2016.

  1. DavidMc

    DavidMc Member

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    18th Jun, 2015
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    Location:
    Melbourne
    I've gotten into a bad situation with two property purchases in a resources related area that have dropped in value significantly.

    Over the years, I've gotten myself into a knot with an over complicated structure (multiple trusts).

    Part of me working my way out of the woods is to move away from the trusts (by either selling or getting things into my own name).

    My previous Accountant looked into moving the properties into my own name without incurring stamp duty (on the basis of 'un-complicating' my structure and the financial mess I've managed myself into). The conclusion was this was not possible.

    Is it possible for me to sell a property from a Family Trust into my own name (and pay the stamp duty obviously)? This still might be the way to go even with paying stamps.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    What state is the property in?

    heaps of issues with related party transfers - get legal advice. not accountant advice.

    probably best done at market value.
    Does the trustee have the power to deal with beneficiaries?
    Will you qualify for the loan?
    How will you fund the deposit?
     
  3. DavidMc

    DavidMc Member

    Joined:
    18th Jun, 2015
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    Location:
    Melbourne
    Thanks Terry. I have been getting both Accounting and Legal advice, but after 6+ months I do not have a clear answer, so I'm getting ready to tell those guys to stop and I figured I'd turn to PropertyChat.

    To answer your questions:
    • The properties are in QLD,
    • It would be done at market value and
    • The loans are all already in my name (I am guarantor to the family trust lending).
    • The trust is a standard cleardocs (Maddocks) family trust and yes, I believe the trustee has the power to sell/buy/etc.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sydney
  5. DavidMc

    DavidMc Member

    Joined:
    18th Jun, 2015
    Posts:
    24
    Location:
    Melbourne
    Thank you Terry. I will chase that up. If it turns out it is possible under this act I will cease my relationship with them and give you a call.