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How to structure it without incurring high cost

Discussion in 'Accounting & Tax' started by bonanzawealth, 7th Aug, 2015.

  1. bonanzawealth

    bonanzawealth Well-Known Member

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    So my dad wants to buy IP property that he eventually inherit it to my brother and let my bro live in it as PPR.

    The ultimate goal is to have this property under my bro's name and service the loan himself.

    Looking at current situation, bro cannot service the loan, his job is unstable at the moment, no way he can get a loan.

    How can this transaction be structured so that when change of ownership from dad to bro doesn't incur too much fees such as stamp duty?

    Is there anyway around this, perhaps trust?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No stamp duty on transfers at death
     
  3. bonanzawealth

    bonanzawealth Well-Known Member

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    how about other than death?
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sorry I thought you meant death when you said 'inherit'. Perhaps a joint purchase with 90%/10% ownership initially may be worth considering.
     
  5. bonanzawealth

    bonanzawealth Well-Known Member

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    Is it like this?
    90% ownership on father, 100% loan responsibility
    10% ownership on son, nil loan responsibility
    Would this be under joint tenant or tenancy in common?
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    More like:
    90% father, 100% loan responsibility
    10% son, 100% loan responsibility
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yep!

    This would be tenants in common too.
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Another option is a discretionary trust where control could be passed.