All Topics / Legal & Accounting / Trust Gifts

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  • Profile photo of TrustTrust
    Participant
    @trustproperty
    Join Date: 2014
    Post Count: 2
    December 8, 2014 - 4:00 pm

    This may be a dumb question, but how do I gift assets to myself in my capacity as individual trustee of a family trust?

    The trust has already been set up with a settled amount, so want to make the gift to myself as trustee to hold on the terms of trust deed.

    Assets are cash and shares in corporate beneficiary.

    Thanks for any help.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 8, 2014 - 9:15 pm

    You cannot contract with yourself so you would have to make a declaration of trust. Shares – need to pay duty in some states. If the trust owns property in QLD could be a lot of duty.

    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

    Profile photo of TrustTrust
    Participant
    @trustproperty
    Join Date: 2014
    Post Count: 2
    December 9, 2014 - 9:34 am

    Thanks.

    Overall has structure has nothing in it aside from $10 settled sum and $10 contributed capital for co’s.

    The family trust has already been established and settled. If I declare trust over the shares, am I creating a new trust or can it be part of the existing trust?

    Alternatively, can I “sell” the shares to another party (there is only $10 contributed capital in the company) and then have them gift them to me as individual trustee of the trust?

    Appreciate your help

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 9, 2014 - 1:55 pm

    You can make a declaration that you now own the shares as trustee of the existing trust.

    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

    Profile photo of PTSMikePTSMike
    Participant
    @ptsmike
    Join Date: 2015
    Post Count: 8
    January 10, 2015 - 5:44 pm

    Also be aware of any potential capital gains tax implications of making a beneficiary entitled to a trust asset. Need to look at whether CGT Event E5 applies.

    http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s104.75.html

    • This reply was modified 9 years, 9 months ago by Profile photo of PTSMike PTSMike.

    PTSMike | Property Tax Solutions
    http://www.propertytaxsolutions.com.au
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    Property Investment Tax Accounting - Sydney | Melbourne | Brisbane | Perth | Adelaide

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