Stamp duty ruling

Dear Members,
I would like to seek for legal advice on a stamp duty ruling for my residential house transfer from a Family trust to my individual name .
I got a wrong advice when I purchased this property in NSW a few years ago by told that I don’t need to pay Landtax for owner occupy property. I used my family trust which I am the sole trustee and beneficiary . And I have been live in there since the purchased . Over the years I have accumulated a couple more properties and now I have reach to the point that the land tax is too expensive . Your option or advice will be appreciated.

 

This will be difficult to do without stamp duty. I won't say it can't be done, but I don't know how to do it without stamp duty. You might be able to argue that the trustee held it on bare trust or a resulting trust for you, if you paid the deposit. I tried a similar argument for a client recently in a private ruling which failed because the evidence pointed otherwise.

For VIC land it could potentially be done.

Consider the CGT consequences too.

You might be able to sue the person who set the trust up for you too if they didn't advise on this.

 

Dont forget the CGT impact as well. Trusts dont access the main residence exemption. There was a type of trust being peddled several years back by a well know accounting firm that claimed the trust accessed a NSW land tax concession for a main residence - which it did not !!

I'm puzzled why anyone would buy their home in a trust in NSW. First the loss of the MRE then the land tax on every $1 of land value etc and some concerns if the person becomes non-resident at any future time. Its fairly clear - Nothing confusing. I would be talking to a solicitor about negligent advice if these issues werent a factor in the advice. I reckon for every 30 people who ask about trusts 29 of them dont, because of these very apparent factors.

The trust could also be varied to restrict the beneficiaries and trigger merger. The solicitor should advise on this. It may be a issue for a NSW duties specialist.