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- ryan mclean wrote:Discretionary trusts are great because you don't have to change ownership of the property when you die and thus do not pay CG tax. You can state yourself as the only named beneficiary and then have your relatives in 3 directions as unnamed beneficiaries. This means when you die, you can simply change the trustee, and your children can take control of the property. As for not paying CG tax. The only method I know is establishing this place as your principle place of residence (PPOR). Putting it in a trust does not cancel out capital gains tax as far as I am aware. Ryan McLean http://CashFlowCapital.com.au Positive Cash Flow Properties Are Just a Click Away
Dear Ryan,
thank you for the reply.can you please tell me, in case my property is not in a trust , when i die, my 300 acreage property pass to my children without cgt, if i mention it on my will? or my children will have to pay cgt when it is passed to them?
i understand from your reply that in a trust my children will not have to pay cgt.
Some people say life of a trust is 80 years only, where as property investment trust (PIT) has no life, which means goes on for ever, is that true?
i am also thinking if in near future (2-4 years) if i have to sell my property, i will get 50% cgt discount if ppor and not in a trust.
whereas in the trust i will have no gain, and the sale will incur cgt at its full.
i am also a high income earner (100K).
the bank is lending me 50% money to buy the property, which is a rural property, can i use the loan and pay interest and claim it on my salary like negative gearing? there is no dwelling on property.
your insight will be very helpful.
regards, meiki
