Moving PPOR into a trust

Now, I know I will need to chat to my lawyer and accountant before I look at doing this, however I just wanted to get my head around the basics before I go off to see them so that I know what questions to ask and have a rough idea of how this would work.
Our family home currently has a mortgage of about 50% of its current value. I hope to pay off the balance over the next few years.
My latest worry is that when the property is mortgage free, I don't want to risk it being touchable if anything bad was to ever happen- (i.e. get sued, etc).
What costs would I incur if I were to transfer this into a trust either now while it has a mortgage (not sure if that is even possible without getting new loan etc), and what costs will I incur if I do this once it is mortgage free?
Is CGT waived since its never been an investment property?
Will stamps be payable again?
Will this cause issues with estate planning? We plan to leave our properties to our kids.

 

What you worried about getting aued over?

 

Transferring into a trust will be a CGT event. Given the PPOR concession, no CGT will likely be payable, however the cost case for the trust will be calculated based on this date.

Transfer duty would be payable in Queensland. Not sure if it's the same in Victoria.

The other issue is that you likely won't be able to claim the main residence CGT exemption once the property is held on trust.

If you're worried about getting sued, consider insurance to mitigate this risk.

 

Probably cheaper to pay insurance then the cgt and transfer duty etc.
And if if **** hits the fan for a unexpecteded reason if in a trust not sure if you can use equity from the property

 

Nothing in particular I just feel uneasy that my house could be up for grabs should anything go to crap

 

Spelling mistakes!

 

As JDM said, but also consider that it will be an asset that cannot pass via your will. This may or may not be ideal for your situation.

If there is a mortgage it would need to be discharged to transfer title, if there is a loan this would need to be applied for again.

You also need to consider the clawback laws as well as how to structure the trust and the trustee, how to fund it - where is the deposit to come from and who will supply it and how, and documentation - also transactions themselves. I have seen a lot of good documentation which doesn't reflects what actually happens.

Also CGT and land tax going forward.

Finally, consider alternatives.

 

Sued by whom ? Stamp duty, CGT and legals and maybe (Vic still has a concession but for how long ?) even annual land tax threafter....Ouch

How will the trust pay you ? And the outgoings ?...Clawbacks and all sorts of legal issues could occur for a while after.

Legal advice would address the cost of this idea.