Selling Trust property to yourself

Discussion in 'Legal Issues' started by wayne, 9th Apr, 2018.

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  1. wayne

    wayne Well-Known Member

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    Is there a simple way to sell a property out of a trust you are both trustee and beneficiary of so to have the property in your own name.

    Are there any concessions as there is no gain in the process.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes and Yes depending on the circumstances.
    If you are trustee the property would already be in your name.
     
  3. wayne

    wayne Well-Known Member

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    We have a corporate trustee for the trust. I am both director of company and beneficiary.

    To move this out of trust will this instigate GCT event, to sell to myself.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    you are not a trustee in that case. Yes a transfer would be a CGT event and a stamp duty event.
    You could seek complex legal advice on a strategy to avoid these - it is above my pay grade however.
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I see from another post that this is a fixed unit trust. It may be possible.
     
  6. wayne

    wayne Well-Known Member

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    That is correct, the property is held in a fixed unit trust, we wish to transfer to my name for PPR.
     
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  7. wayne

    wayne Well-Known Member

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    Hi Terry, are you able to expand on what type of strategies may be available to move a property out of a trust.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There is a way to structure this so the trust dissolves. Seek legal advice
     
  9. wayne

    wayne Well-Known Member

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    Will dissolving the trust trigger CGT event and stamp duty as the trust holds two properties.
     
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    This is something you need expensive legal advice on.
     
  11. wayne

    wayne Well-Known Member

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    Thanks, will discuss further with solicitor.
     
  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    In a nutshell... Yes (100% certain) and Maybe.

    One practitioner in this field wrote a great article for the Tax Institute a few months back about trust splitting and concessions. John Iannou of McCulloch Robertson Lawyers. I assume it would be costly