Loan in Own name transfered to Trust

[platinum888]

Hello All,

A friend of mine bought a block of land a year ago on his name, they currently set up a Hybrid trust and also gained DA approval to build 2 houses on the block.

He wants to transfer the land to the trust, a conveyancer is doing the transfer and he is aware on the CGT and Stamp duty fees but his not sure what to do with the loan, well technically it stays the same..

Loan is in his name and want to keep it that way but the title will be in the Trust name after the transfer > Loan With ANZ

His spoken to a few broker and was told this cant be done..

He called ANZ and was told it can be done but his waiting for a call back from a senior mortgage consultant to advise him on how to do it (His been waiting for 4 days)

I have Dales book, and have a little bit of an idea how to borrow for new purchases but not on existing loans..

D

 

[Invictus]

Hello All,

A friend of mine bought a block of land a year ago on his name, they currently set up a Hybrid trust and also gained DA approval to build 2 houses on the block.

He wants to transfer the land to the trust, a conveyancer is doing the transfer and he is aware on the CGT and Stamp duty fees but his not sure what to do with the loan, well technically it stays the same..

Loan is in his name and want to keep it that way but the title will be in the Trust name after the transfer > Loan With ANZ

His spoken to a few broker and was told this cant be done..

He called ANZ and was told it can be done but his waiting for a call back from a senior mortgage consultant to advise him on how to do it (His been waiting for 4 days)

I have Dales book, and have a little bit of an idea how to borrow for new purchases but not on existing loans..

D

My understanding, after reading Dale's book, is that the loan should remain in his personal name and the HDT will issue him special income units. The special income units will entitle him to income and therefore he will be able to claim the interest on the loan on his tax return.

This is not advice and I may well be wrong so please check with your accountant before you or your friend take any action.

 

[rossdc]

Get your friend to see his accountant and speak to a tax lawyer together as what the conveyencing will encounter might not be the right structure and you can into a mess. It is essential to get this right as the initial cost for this consult will save you huge headaches later. Trust me I have just done smae also each state differs with their laws re stamp duty.