Are my wife and I eligible for "First Home Owners Grant" ?

[Norway]

Hi,

My wife and I are considering to buy a our first home in Perth, but we are not sure if we are eligible for the FHOG since my wife are one of the owners of a faimly trust where one of the assest is a house, passen on by her parents.

Are we eligible? you comments and feedback is much appriciated.

Thanks,

 

[Belbo]

Depends. What colour is the house?

 

[Peter_Tersteeg]

If the house is purple with pink pockadots you're not eligible.

Other wise I don't see a problem with it, given the trust owns the other property, not you or your wife.

 

[Paul Thewlis]

If you have not lived in the house owned by the trust then it's an investment property and you should still be eligible for the FHOG. You can own an investment property and still be eligible for the FHOG as long as you haven't lived in a house you have owned.

 

[Terry_w]

You cannot own a family trust. You could have an interest in the trust as a beneficiary. But this doesn't amount to ownership. There is a good chance that the trustee won't ever give a beneficiary any benefit from the trust either.

Each one of us is probably a beneficiary in hundreds of trusts without even knowing it.

 

[Terry_w]

If you have not lived in the house owned by the trust then it's an investment property and you should still be eligible for the FHOG. You can own an investment property and still be eligible for the FHOG as long as you haven't lived in a house you have owned.

Even if a person has lived in a propert owned buy a trust then they should be eligible.

Probably the only exception would be a bare trust where they have the whole beneficial interest in the property with someone else having the legal interest.

 

[Belbo]

You cannot own a family trust. You could have an interest in the trust as a beneficiary. But this doesn't amount to ownership. There is a good chance that the trustee won't ever give a beneficiary any benefit from the trust either.

Each one of us is probably a beneficiary in hundreds of trusts without even knowing it.

What? That's an astonishing suggestion! Really???

 

[Terry_w]

What? That's an astonishing suggestion! Really???

Why, yes. Maybe not hundreds, but many.

If anyone in your distant family 'has' a trust then you will probably be a beneficiary.

 

[Belbo]

Why, yes. Maybe not hundreds, but many.

If anyone in your distant family 'has' a trust then you will probably be a beneficiary.

Wow! Does it have to be family, or can we nominate, say, "the population of Tasmania" as beneficiaries?

 

[Terry_w]

Wow! Does it have to be family, or can we nominate, say, "the population of Tasmania" as beneficiaries?

Has to meet the rule of certainty. Populations change too much.

Someone once stappled a Victorian phone book to the trust deed and the beneficaries where defined as these people - but I don't think this worked either.

 

[Belbo]

Has to meet the rule of certainty. Populations change too much.

Someone once stappled a Victorian phone book to the trust deed and the beneficaries where defined as these people - but I don't think this worked either.

That's hysterical! Thanks for the heads up on why not to trust trusts.

(Apologies for brief hijacking of thread. Oh, and for my first post. And, well, for this post too I guess. )

 

[Norway]

So in short, either of the people that responded knows the answer??

Do any one know where to call or how to figure out if we are eligible for the grant??

Thanks

 

[wylie]

If you have not lived in the house owned by the trust then it's an investment property and you should still be eligible for the FHOG. You can own an investment property and still be eligible for the FHOG as long as you haven't lived in a house you have owned.

I think this is right, but the department that issues the grant is the one to ask to confirm. If you get someone who says no, call again. We used to always call two different branches of the ATO and often the answers were different.

 

[matto_]

The answers pointed to, needing more information.

Have you ever lived in the house? If not u should be right.

Calling someone-u should b able to call the govt dept responsible.

 

[Terry_w]

So in short, either of the people that responded knows the answer??

Do any one know where to call or how to figure out if we are eligible for the grant??

Thanks

Look at the fhog act in the state you want to buy in

 

[Peter_Tersteeg]

So in short, either of the people that responded knows the answer??

Do any one know where to call or how to figure out if we are eligible for the grant??

Thanks

The property is owned by a trust, not you. As long as you've never lived in the house, you're almost certainly eligible for the FHOG.

 

[Terry_w]

The property is owned by a trust, not you. As long as you've never lived in the house, you're almost certainly eligible for the FHOG.

Even if the wife has lived in a house owned by the trustee of a discretionary trust then they both would probably still be eligible.

If it wasn't a discretionary trust, such as being the beneficiary under a legal disability, then maybe not.

 

[Peter_Tersteeg]

Even if the wife has lived in a house owned by the trustee of a discretionary trust then they both would probably still be eligible.

If it wasn't a discretionary trust, such as being the beneficiary under a legal disability, then maybe not.

Probably would, but it might make things a bit muddy.

 

[Aaron_C]

Let's not complicate this with trusts etc as the poster is obviously a first home buyer. Simple answer is if you have never bought a house to properly live in, then you are eligible for the grant. This means if you have bought an investment property and have never lived in it then you are still eligible.

 

[Terry_w]

The poster mentioned a trust so it may be relevant.

If the property is in WA the the relevant Act is the FHOG Act 2000 WA.

There are a few relevant criteria, but the main one we are talking about here concerns previously having an interest in another property.
s 12 states an applicant won't be eligible if they have held a relevant interest in another property before:
http://www.austlii.edu.au/au/legis/wa/consol_act/fhoga2000250/s12.html

'relevant interest' is defined under s6
http://www.austlii.edu.au/au/legis/wa/consol_act/fhoga2000250/s6.html

The op would also have to consider other legislation if the trust held property in another state. The relevant legislation for that state has to be checked to make sure that this is not a 'relevant interest' in that state either.

Please seek your own legal advice before acting.