Opened Trust in SA and Stamp Duty Paid in Victoria

Hi,

I have opened a trust in SA and my accountant paid the stamp duty in Victoria.

One lawyer says, Because I am living in Victoria, Stamp duty has to be paid in Victoria and Stamped in Victoria.

Another lawyer says, because the trust was opened in SA, the trust deed has to be stamped in SA. or else the
vesting date of my trust will be 80 years, even though I opened the trust in Victoria.

Please advise.

Thank you.

 

Why is an account stamping trusts?

Both lawyers are incorrect.

Stamp duty is payable on where the deed is executed. There is no duty for execution in SA anyway

 

Terry, is there legislation or case law on the sa trust doesnt have to vest after 80 years thing?

 

In SA yes.
But that doesn't mean a SA trust can go beyond 80 years.
Also property held in other states must vest as the local laws apply to immoveable property

 

Terry,

Very good point. Why are the lawyers and accountants advising clients to open a trust in SA and buy property in Victoria and they tell us, the trust will go on forever.

So, they don't tell the truth, that the property has a vesting date of 80 years, even though the trust can go over 80 years.

 

Accountants can't advise on that, and the lawyers should know better!

They won't be around to sue in 80 years and prob good marketing in the meantime, but misleading.

 

Terry how does this apply if the trust only has shares? Happy to read the legislation myself if you give me something to search for.

 

I will write a separate post on this topic later.

Hari was your accountant a firm with a name starting with 'C' ?

 

Terry,

Yes, accounting form starts with "c" The property Trust is their trademark.

Hopefuly we can have more information on this trust.

Thank you.

 

They are renowned for making this false claim and for giving legal advice without being lawyers!

 

The best was their Sydney tax manager who was a wannabe executioner in his spare time. Contracted to shoot Michael McGurk. But was so incompetent he didnt dispose of the evidence and left a lot for detectives. Google Xhan & Xaylor + hitman as its a funny read. Who subcontracts a hit ? And....gets ripped off on the way through and even engaged a police informer who stole the cash and also told the cops. The court room joke was him asking for a receipt.

 

There was a company formation company that was assisting people to bypass duties in Vic by having all deeds executed under POA in SA. They got pinged by OSR NSW and Vic and stopped the practice. The settlor was never (or rarely) in SA and so the deed was held to be settled in the state where it was executed by the settlor in each instance. A trust requires somel legal elements to exist - terms of trust + trust property being important eg the sum settled and the deed signed by the settlor.

I know a bit about the trust. It has all sorts of promises in the past even down to it being a fixed trust for NSW land tax (it isnt and never was). Its a hybrid discretionary trust. It had loads of amendments to fix the ATO concerns (as well as marketing promises) and some of the promises just snowballed. Its expensive and doesnt deliver anything special v's cheaper documents. It also seeks to misrepresent that other practitionesr cant assist in the (costly) tax affairs. Last one I saw which needed amending cost $1000 to fix its errors by the very same law firm who were named on the original deed.

The very act of marketing the deed properties is likely a breach of the Legal Professionals Act or its equivalent in each state. It is legal advice and a fee is paid. The accounting firm is not a legal practice. This statement seems consistent with that and doesnt mention tax but mentions legal conceepts and a belief in the strength of those legal views.

The Chan & Naylor PIT® was developed specifically for property investment purchases and incorporates a number of unique features in the PIT® Trust-Deed that now makes this known as a premium property investment trust structure for holding real estate investments. The PIT® Trust Deed offers a property investor supreme versatility in asset control and wealth creation.​

Many hybrid disc trusts which issue units can assist a investor owning those units to claim interest deductions for borrowings used to acquire the units. There is no necessity to need a product ruling if the conditions of the ATO rulings on hyrbid trusts are complied with and "others" dont benefit from the trust. (Refer PR 2014/15).

 

If a SA discretionary trust owns a company and the company owns a property in NSW, can this avoid the rule against perpetuities? Since the property is not owned by a discretionary trust and a company can own property indefinitely.

 

What do you mean by SA trust?

 

Are those perpetual SA trusts with no vesting date a tax urban legend?

 

Hi Terry, a discretionary trust whish is established in SA.

 

If the central control and management is there then possibly

 

Most are