QLD Family Trust what name on title

[Marty McDonald]

Hello my learned Queenslanders,

Was hoping someone would confirm what the correct name should be in this scenario. Its a QLD property. I am NSW based.

Family trust set up with husband and wife as personal trustees (I know usually I would council to use corporate trustee but this is their advice).

So in QLD who's name should be on the contract for sale / title. I am assuming it is as follows
" David Smith and Jill Smith ATF The Smith Family Trust"

as opposed to NSW where if it is like a corporate trustee would be just the personal names?

 

[pinkboy]

Daryl (RPI) would be your man.

I'm pretty sure you're right though. Qld contracts are pedantic, so instead of 'ATF', you would write it word for word as well.

Don't take my word though.

pinkboy

 

[Paul@PFI]

It is common practice that title is ONLY registered in the name of the trustees and all mention of a trust is ignored and incapable of being regd on title. This can create uncertainty about the legal owner v's the owner on title in some cases. eg a family trust, even a smsf.

The proof that the Trustee is the buyer and holding the property as trustee should be conveyed in the ancilliary documents such as the contract, trust financials, trust tax and use of funds from a trust bank account etc. Plenty of people have come unstuck by that. In a SMSF it may also be necessary to lodge a caveat that defines that the property is that of the fund.

All further reasons why having human trustees is a poor choice.

The contract should be made in the following manner

John Grant Smith and Beryl Louise Smith as Trustees for the Smith Family Trust. If the entity has an ABN (eg a SMSF) then John Grant Smith and Beryl Louise Smith as Trustee for the Smith Family Super Fund (ABN 99 888 777 666). The ABN assists to identify the entity if the entity has one. A sole Trustee should not execute the contract. Each should execute it. However the title will only be made in the human names.

It is also equally important that a contract to be signed by a company trustee that complies with s127 of the Corporations Act. Ensuring the contract is executed to comply may avoid later concerns the contract was validly made by the trustee.

 

[JDM]

The purchaser will either be:

1. David Smith and Jill Smith as trustee for The Smith Family Trust (in which case you would usually disclose the trust on title); or
2. David Smith and Jill Smith (in which case you would usually not disclose the trust on title).

There is no requirement to disclose the trust on title. There may be a provision in the contract warranting that the buyer is not buying in their capacity as undisclosed trustee, however this is more commonly found in off the plan unit contracts.