Ownership structure

Our home property in SA can be divided into 9 blocks.
I have 5 children and want to give them a block each.
I need some guidance on the best way to set this up.
We have been told that we have to pay CGT on each block which could mean a tax bill of upto $400,000 on money that we don't get. (This would kill our dream)

Should we put our kids on the title before division?

I need someone that really knows property tax law.

Have been to 3 accountants all with different answers.

Can't afford to get it wrong.

Any help greatly appreciated.

Peter
 
I have a great tax law barrister who can help with the CGT side. Problem is the SA Stamp duty side would be better handled by a local. I would suggest trying to find a local lawyer who is into property development as he should either be able to provide the advice or refer to someone who can.
 
I just replied to a duplicate of this post in another thread:

Peter

There are many ways you could minimise the tax payable on the transfer to the children.

Subdividing and then transferring will result in CGT as no main residence exemption can apply to vacant land.

You would need to crunch the numbers on each strategy.

One strategy may be to sell the entire block to one child who then sub-divides it and transfers each block to the other children. CGT may be nil on the transfer to the one child and then little on the transfer to the other children as there is no increase in value during this period (except by the sub-division).

You also need to consider stamp duty and GST, maybe even land tax.
 
A very simple issue. Leave them a deceased estate interest ! Make a will.

- No CGT
- No duty
- $200 in costs ??

And then dont leave it by a "give will". Use a testamentary trust so their greedy GF / wife / creditors etc do not hook into it. Your asset protection risks havent been thought through. Imagine if their ex became the owner ?? Through the genrosity of the family court..

If they own land that they dont occupy do they want to land tax, CGT and other problem you are giving them ??
 
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