Cost of discretionary trust

[belleran]

Can someone give me some indication of the cost of setting up a trust?
We have had a trust since 1997 and hold properties in this structure but now need to set up another trust for future holdings as we have passed the land tax threshold. We will need to transfer a couple of properties into this new trust.

 

[alexlee]

Can someone give me some indication of the cost of setting up a trust?
We have had a trust since 1997 and hold properties in this structure but now need to set up another trust for future holdings as we have passed the land tax threshold. We will need to transfer a couple of properties into this new trust.

Wouldn't the stamp duty and capital gains make the cost of setting up the trust irrelevant?

 

[RPI]

Transfer properties to the new trust would in effect be selling them to the new trust.

Coasty Mike can advise on the process they utilise to get around this.

Cost of setting up a new trust at a guess $300 ish, $1100is including a corp trustee

 

[Terry_w]

I charge a fee of $1100 for a simple discretionary trust including legal advice backed up in writing.

 

[belleran]

Thanks all
Alexlee - my understanding from the info on this forum is that you can transfer property into an identical trust with no stamp duty of cgt. I have made an appt with a solicitor to talk about setting up a new trust and will have that confirmed or otherwise.

 

[Moneyman_85]

wow, i was thinking a hell of a lot more than $1k for a trust setup

 

[D.T.]

I charge a fee of $1100 for a simple discretionary trust including legal advice backed up in writing.

With self-trustee?

 

[coastymike]

Belle

No unless done properly the transfer of property from one trust to another will result in stamp duty. I am aware of only one lawyer who has a private ruling from the osr confirming that the approach taken hy them doesnt result in stamp duty. Ask your solicitor for a private ruling from the osr before you contemplate the transfer. The loophole will be closed within a year i expect so i would have my doubts they know how it is done.

 

[RPI]

Belle

No unless done properly the transfer of property from one trust to another will result in stamp duty. I am aware of only one lawyer who has a private ruling from the osr confirming that the approach taken hy them doesnt result in stamp duty. Ask your solicitor for a private ruling from the osr before you contemplate the transfer. The loophole will be closed within a year i expect so i would have my doubts they know how it is done.

That's why I said see Mike. He knows who found the loophole and that person has the ruling. Chances are they spent a fair amount of money (at least in time) finding it. Easiest action in that situation is to contact Mike and get him to handle it for you. It will be done right and will cost you less than getting another solicitor to sort it out for you, get a ruling etc.

 

[Terry_w]

With self-trustee?

Self trustee???? That is what I charge for the trust set up with legal advice. Company set up with legal advice would be another 1k incl asic fees.

 

[belleran]

Mike I have sent you a PM