Purchase by a trust, what's entered as the buyer's details?

[thydzik]

Hi All

Simple question, if I am purchasing land into a family trust (that has a corporate trustee), what is filled in as the buyer's details? simply the name of the trust?

thanks.

 

[Jacque]

Check with your accountant or whomever set the trust up but it's usually something like XYZ Pty Ltd ATF ABC Family Trust.

 

[MTR]

Check with your accountant or whomever set the trust up but it's usually something like XYZ Pty Ltd ATF ABC Family Trust.

Yep, pretty sure what is right

 

[Terry_w]

Hi All

Simple question, if I am purchasing land into a family trust (that has a corporate trustee), what is filled in as the buyer's details? simply the name of the trust?

thanks.

A trust doesn't exist, it is simply a relationship. So the answer is the legal owner which will be the trustee. But it is common in some states to list the trust name on the contract as well. Seek advice from your property lawyer.

 

[Tano]

<company xyz PTY LTD ACN xx> as the trustee for the <trust name>

 

[thydzik]

thanks for the replies,

seems it wasn't as simple as I thought,

I shall speak to my accountant

 

[thydzik]

found this link online
http://www.attwoodmarshall.com.au/wp-content/uploads/2012/05/tips-when-purchasing-property1.pdf

they state

"ABC Pty Ltd as trustee for the John Smith Family Trust".

 

[thydzik]

also some good reading here;
www.pwc.com.au/legal/assets/legaltalk/LegalTalk-Alert-I-11Nov10.pdf

 

[Terry_w]

Get legal advice - state specific stamp duty laws could have effect.

 

[Blacky]

A trust doesn't exist, it is simply a relationship. So the answer is the legal owner which will be the trustee. But it is common in some states to list the trust name on the contract as well. Seek advice from your property lawyer.

Depends on which Law you refer to Terry - and correct me if I am wrong...

but as far as the land administration is concerned - then yes - the trust is simply a relationship and therefore only the trustee is listed on the title.

As far as taxation law is concerned the trust is a separate entity, and therefore is treated as such from a tax perspective.
The only way the tax office is able to recognise that a property is owned but the trust (and not the trustee) is by referring back to the O&A - which should state that the property is being purchased by 'XYZ Pty Ltd atft ABC Family Trust' - though only the corporate entity will show on the title.

As you stated in a later post the OP should refer back to the lawyer who set the entities up - as it is state dependant.

Blacky

 

[Peter_Tersteeg]

Check with your accountant or whomever set the trust up but it's usually something like XYZ Pty Ltd ATF ABC Family Trust.

I can't point to any legislation or tax rulings, but every finance application, the owner was stated on the contract as per Jacque's example.