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How to change Trusts

Discussion in 'Accounting & Tax' started by wayne, 27th Jul, 2016.

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  1. wayne

    wayne Well-Known Member

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    We have a Property Investor Trust in NSW holding two IP's. We are looking at changing the Trust to a land Tax Unit Trust (Macquarie product) to gain a trust - land tax threshold.

    Do we need to go through out accountant in the first instance or direct to Macquarie.

    Thoughts
     
  2. thatbum

    thatbum Well-Known Member

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    If its what I think it is, you probably need some serious specialist legal advice.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Chan & Naylor?
     
  4. wayne

    wayne Well-Known Member

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    Yes, C&N product.
     
  5. D.T.

    D.T. Specialist Property Manager Business Member

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  6. Terry_w

    Terry_w Structuring Broker and a Structuring Lawyer Business Member

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    You can't just swap trust deeds.

    The trustee will need to seek specialist legal advice. But before that the trustee should review the deed and see if there is a power to amend. If there is who has the power - it might be the trustee and consent from the appointor could be needed (or from soneone else)

    Then you have to consider what the consequences of the variation will be:
    1. stamp duty (if any)
    2. CGT (if any)
    3. Asset Protection
    4. Deductibility of interest
    5. Loans
    6. Succession on death
    7. Control
    etc