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What is the most efficient way to accumulate asset in family trust ?

Discussion in 'Accounting & Tax' started by Kangaroo, 6th Oct, 2015.

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  1. Kangaroo

    Kangaroo Well-Known Member

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    We are in the middle of the road of investing. Currently IPs are all under individual names or joint tenants. I am thinking of moving assets into our family trust for obvious reasons eg, tax treatment and protection. I over heard a bit that you can move whatever under own name into family trust by way of testmentary will, where there will be no CGT and stamp duty. Terry_W had an excellent article in PC. And so far the most efficient way of transferring asset into family trust, I can sort of understand, is to DIE.

    Are there any other ways to do the job while we are still ALIVE ? like using SMSF as an intermediary tool ? has anyone done it ? Any comments are highly appreicated.
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Hiya,

    There isn't any other ways of transferring to disc trust unfortunately. You certainly can't go via SMSF, either.

    What I would do is keep the ones you have in your name, setup a Trust and buy in that from now onwards (til each reaches a certain point and setup additional subsequent ones).
     
  3. Kangaroo

    Kangaroo Well-Known Member

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    Thanks for the reply, how about the following? will it work ?
    1. Invest under own names
    2. redraw from IPs under own names, self lending to SMSF for SMSF to invest IPs,
    3. Keep doing 1 and 2
    4.When old enough, sell the SMSF owned IP for CGT free. Individual gifts the debt to SMSF and then give everything to family trust.

    will it work ?
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Sounds fine except for the self lending to SMSF part. Check with one of the pros on whether that's allowed or not.