Title - Joint proprietors - Kids on the title?

Viewing 6 posts - 1 through 6 (of 6 total)

gavsam
Member
@gavsam
Join Date: 2010
Post Count: 16
June 10, 2011 - 10:29 pm
Hi,
When purchasing a property and arranging for the title to list both myself and my wife as joint owners / proprietors.
I was thinking is it possible to also put our 2 kids names on the title as proprietors???
(thus being able to pass the property on to them later without having to sell it to them and forgo capital gains tax, stamp duties etc)
or is it not possible to have more than 2 joint proprietors, or because their under 18 is that an issue??
If this is possible, does it then mean that if there are 4 joint proprietors, that each has a 25% share, meaning each person can only claim 25% of the property for tax purposes etc (neg gearing etc)
????????
scullyman
Member
@scullyman
Join Date: 2004
Post Count: 43
June 11, 2011 - 12:20 am
You might want to look at setting up a trust structure. This way the trustee of the trust can distribute any portion of income/expenses to any of the named beneficiaries (wife, kids). But, you will need some professional advice as some trusts don't have any tax advantage for negative geared property. A trust structure also protects all parties should something go wrong down the road.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 11, 2011 - 12:39 am
Children can own real property under certain circumstances. But I doubt you will find a lender willing to lend to them.
You could buy a property as trustee for your children, ie a bare trust. Your name with them as the beneficial owner. When they become 18 you can transfer title to them without stamp duty and CGT applying, generally. But again you will have a problem finding a lender.
Or you could buy a property via a discretionary trust and give them control of the trust later – the property would be subject to land tax and CGT though.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
gavsam
Member
@gavsam
Join Date: 2010
Post Count: 16
June 11, 2011 - 1:25 am
Thanks Terry for the tips,
Who are you??, you seem to have an answer for everyone's Q's
Cheers
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 11, 2011 - 1:46 am
I am an answerer!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
st81hp79
Member
@st81hp79
Join Date: 2010
Post Count: 35
June 11, 2011 - 2:59 am
Terryw wrote:
I am an answerer!
LOL