Hi all,
Here’s my query –
If I set up a propriety listed company BEFORE I sign a contract to buy a place, and I sign the document “my name and/or nominee” then I establish a family trust before settlement – can I insert the name of the company “as trustee of xyz trust” as the purchaser.
I know that a trust is only evident on the transfer document and not on the title (ie: the Registrar General won’t register a trust as the owner) but I want to know if what I’ve described above is doable WITHOUT INCURRING ADDITIONAL STAMP DUTY OR OTHER COSTS.
The reason for this query is that we’ve found a place, our offer looks like being accepted, but we haven’t got the family trust organised yet.
But we thought we could get a company set up easily enough with Cleardocs, and then sort out the trust during the settlement period.
Anyone?
A Trust does not take that much longer than a company if you use a good Accountant. I think you need professional advice as to the above as the Trustee would appear to own the asset instead of the Trust unless you pay duties again to transfer.
Why don’t you just delay contract date for a few days and get the Trust sorted if you are adamant you want it???
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksHi Mortgage Advisor – I admit I’m in a quandary what to do!! I will be on a low income as I will be working part-time in a year or two, so I could just put this place into my name and negative gear the first couple of years (while my income in highish) and then, by the time I go part-time this property will be close enough to positively geared.
OR – because I’m confident of pursuing property investment as the main arm of my financial strategy, I feel that the sooner I get a trust established the better.
Anyway, the agent has rung, the offer is accepted and he’s meeting up with me at work tomorrow to sign the contract.
I don’t want to lose this deal because I stall in order to get the trust organised, so – at this stage – I think I’ll go ahead and sign it in my name and all FUTURE properties will be in that ##!!### trust that I should have got around to organising sooner!!!
thanks for your help,
Carlin
Be careful. It may depend on which state you are in. I hear WA is very strict in this regard and many people have been hit with double stamp duty. It may also not work in QLD unless you are careful.
I think the company would have to be setup before signing and the trust would also really need to be setup before signing a contract.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why not look into a “Novation Agreement”? This may allow you to change the contract so you can put the house into a trust, as long as the other detaile do not change.
CATA
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