Establishing a Trust After Purchase Date

Discussion in 'Legal Issues' started by Lee Jackson, 28th Nov, 2002.

  1. Lee Jackson

    Lee Jackson Member

    Joined:
    2nd Oct, 2002
    Messages:
    11
    Location:
    Melbourne
    Hi guys and gals,

    Can anybody solve this little pickle:


    Purchase Date: March 2002 for $390,000
    Settlement Date: April 2003

    The contact luckily had and/or nominee. I have upto 14 days prior to settlement to tell vendor who I am nominating.

    I want to establish a Hybrid Trust with a Company as Trustee. Now problem is I already have purchased the property prior to establishing the trust. I believe the only issue that I am up against is the SRO (state revenue office) in relation to double stamp duty. I rang them yesterday but it was like talking to a brick wall. Can somebody comment or confirm that the only issues I will come across will be the double stamp duty and that is what I am trying to clarify if I need to pay this at all.
    :confused:
     
  2. Aceyducey

    Aceyducey Member

    Joined:
    18th Nov, 2002
    Messages:
    6,692
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    Location:
    Canberra, Australia
    Lee,

    Dale is the person to get to answer this :)

    You'll have to work fast to get all the structures in place in 14 days!

    Just in case Dale's not online for a few days, I suggest you look up DaleGG in the members list and email/private message him for advice.

    Cheers,

    Aceyducey
     
  3. Chris G

    Chris G Member

    Joined:
    29th Sep, 2002
    Messages:
    47
    Hi Lee,

    I had a long post ready to submit and the site went awol. Might redo it later but in the meantime....

    TRANSFERS PURSUANT TO AN AGREEMENT FOR THE SALE OR TRANSFER OF DUTIABLE PROPERTY
    http://www.osr.nsw.gov.au/revrules/rrdut010.htm

    Have a look at that Revunue Ruling(from nsw OSR). From what i can gather you will have to pay double stamo duties as 1) You and your trust were not "related persons" at the time the contract was formed, 2) you did not NAME the trust merely stated "and/or nominee"

    It looks as if you could have named the trust as "xyz trust" and then formed "xyz trust" (same applies for companies) at a later date and not have been hit for double stamp duty as the trust is actually named on the contract. Also this looks like it only works for unit trusts? (not hybrid like you mention)

    Only my thoughts. Probably created more ?'s than I helped answer.....

    Hope it helps.

    Cheers
    Chris