Can anyone out there advise on the following please?:
I am soon to become a first-time grandfather and would like to do something to ensure a good start for the child/children when he/she, or they, come of age 20 years down track. I have an investment property in Queensland and am thinking of transferring the title to a Trust for the child/children. In the meantime, after retirement, I would live in the property as Administrator of the Trust. Is this possible? If so, are there any tax implications to be considered?
Any advice would be much appreciated. Also recommendations for a Sydney lawyer/accountant specialising in this field would be a great kick along.
Thanks
Longbeach
do you have any other property? If none, it may be best to leave it in your own name for now. If you transfer it you will pay stamp duty and CGT and you will need to pay rent when you live in it later.
You should look at forming a testamentary trust which is a trust in your will which is formed on your death. There are some considerable tax benefits, more than a normal discretionary trust, and you will also have asset protection for your grandkids – eg in the future they may enter into a defacto relationship with a gold digger.
May cost around $5k to setup.
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
Testamentary trust is the way to go.While it’s nice doing stuff for the children / grandchildren, it’s better if you control it. You don’t want them selling a property just to buy a 4WD! Build generational wealth instead!
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