Hybrid Trust and Transfer Wording

[sunnywan]

NickM / Dale / Rolf - are you able to help?

I recently purchased a property using a trust (hybrid):

1. I signed the front page of contract "company ATF trust"
2. I took out a loan under my own name
3. I settled the property last Friday

Today I saw the "transfer" sheet (Land & Property Information NSW), and under "transferee", it only had "company"...and not the full "company ATF trust".

Is this correct? I would have thought it should be the same as what is on the front page of contract?

 

[Rolf Latham]

Hiya

In many states, the entity used for transfer is the trustee company only.

I have questioned this with the powers that be who tell me there is no issue from a tax or asset protection point of view.

Who is the lender and who attended to settlement docs on your behalf ?


Ta

rolf

 

[GameBoy]

Its my understanding that anything purchased in the company’s name is automatically brought on behalf of the trust.

 

[sunnywan]

Rolf,

Many thanks for your prompt response. I take it that NSW is one of those states? Do you know if there is a reason why they cannot use the full "company ATF trust" in the "transferee"?

Like, if I was to request that the "ATF trust" be appended to the transferee, would there be any problems? After all, it was what I put on the front page of contract.

The bank was ANZ and I used my local solicitor (P. King) to deal with the settlement.



Gameboy,

Thanks for your response. Does that mean that the "company" is tied into this "trust" alone? If the "company" could act as trustee to other trusts as well, then there would be a problem?

 

[Jas]

I tried this with one of the places I bought. I added ATF for trust and sent the signed contract back.

All it did was delay things for a week, while the solicotors sent out a new contract (for which they charged me extra). The new contract was still just company and not company ATF for trust.

I gave up at that point.

Another place I bought, the solicotrs put on the contract 'company in its own right and ATF for trust'. I quereid that one too, and was told that it didn't matter, as the company only did things ATF the trust.

Another good reason not to trade in with the company.

Jas

 

[sunnywan]

So what you're saying...

Jas,

So what you're saying is the "company" is tied in with the "trust". Anything the "company" does is recognised by the ATO as having been done "ATF the Trust"?

Even when only the "company" name is used in things like the "transferee" in a transfer sheet at settlement?

Thanks,

- Sunny.