CGT & gifts to grandchildren

G’day,



Im in my 50s have PPOR fully paid, minus 200,000 line of credit, which I used for growth shares a few years ago.



Some of those shares have increased in value and I plan to sell some, I plan to gift my 4 grandchildren small six-figure amount (depending on tax liability) for home deposits.



I then will pay down remaining line of credit and reinvest 200k to invest in dividends ETFs. This will supplement my income when i go towards and into pension mode, as unfortunately I have developed osteo arthritis and do not plan to work later on.




My question:


1/What is most as effective way to gift my grandchildren those amounts. For reference I’m in the 37c tax bracket & my capital gains will be higher, so should I wait until I’m in Transition to retirement?



2/Would I better suited using the carry forward rule to transfer shares to my superfund? What would there be CGT in regards to this? How would we manage that, for e.g. sell shares either side of 30th June.

Any suggestions/ideas welcome.



Thank you.


 

Will you be affected by any gifting rules for any part pension? Ie must be done at least 5 years prior to claiming the (govt) pension within limits.

 

1. Do it upon your death
2. Cgt

Get both legal and tax advice. A loan to them prob better

 

1) Potentially, as with reduced income your CGT would potentially be taxed at a lower rate.
2) Transferring shares from yourself to your SMSF would attract CGT.

 

You dont use a carry forward rule as such. The carry forward rule increases a potential concessional cap sometimes. You may also be confusing this with the three year bring forward rule which also may allow non-concessional amounts to exceed the annual $100K cap. The inspecie contribution could be concessional or non-concessional or both and would depend on caps and taxable income etc. Yes CGT is a consideration. But if you have cap available it could be that the deduction offsets any tax due. It needs planning. Personal tax advice on the strategy and managing tax utcomes would be wise.

I am confused by the first question. Gifting and reference to tax rates doesnt make sense.

Q : Have you explored TPD options in super insurance ?