family trust question

If I, as a primary beneficiary of the family trust gift 100k to the trust, then wind it up (as the director of the trustee company) and distribute the 100k back to me, do I incur a CGT on the 100k? or even if I don't wind it up, but simply distribute this capital back to myself, does it get CGTed?

 

Short answer is no.

 

Thank you, that's a relief.

 

When funds are originally deposited it will be "funds contributed" against your beneficiary account. Similarly when you withdraw the funds it will be drawings against your beneficiary account.

The account will also have any profits distributed to you (for which you pay tax on on your personal name). So the tax will be paid each year on your distribution, and the balance in the account will represent what you are entitled to call upon (draw out).

 

Keep in mind the terms of the deed. Can vesting be brought forwaed and you are a capital beneficiary

 

Gg wouldnt that only be the case if it was a loan. If it was a gift there there wouldnt be a beneficiary account?

 

You are correct Terry. My oversight.
I guess OP needs to be clear on the nature of the original funds put into the trust..

 

But the corpus of the fund could still be distributed tax free as long as it was not income, s99B(2)(a) ITAA36

 

wow it always gets more complex doesn't it! thanks for the input ghost and terry

 

Trusts are extremely complex. I am still learning things every day.

 

For the everyday uses that a buy and hold investor would do, trusts are pretty basic.

 

At first glance...