Hi,
Just received my Wealth Guardian a few days back. Been listening to the CD that came with it. My questions are:If a property is purchased under an individual, and she is intending to sell it to a trust, can she minimise her expense (stamp duty, etc…) by selling it at a loss?
Can an individual donate the property (as a gift) to the trust instead?
On the strategy of having a “fall person”, does this mean that the debt is under that person’s name? How can he be granted a loan if he is declared insolvent? I am not very clear on this. Please advise.
Comments anyone?
Alexandra,
Well, I just finshed studying this area last year so in theory i am supposed to know a little here, but I have been in the US partying for 5 months so I am a little fuzzy..anyway..
If a property is purchased under an individual, and she is intending to sell it to a trust, can she minimise her expense (stamp duty, etc…) by selling it at a loss?This method would potentially lower expenses but it is highly liklely that the tax department would look at this transaction at ‘less then arms length’ thus finding it a transaction purely with the intent to lower taxes and would strongly look down on it.
Can an individual donate the property (as a gift) to the trust instead?As far as I am aware this is possible but stamp duty etc would still need to be paid based on market value as the ‘paper work’ in regards to new owner would need to be filed etc.
However if you are the sole beneficiery of the trust I think you are able to transfer property to that. I am fuzzy in this area but that is my understading.
Well, I hope I haven’t confused you anymore…i get back to OZ next week so if you want clarification let me know and I will dig up my text books…
Pete
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