Transfer PPOR to Family trust

Hi

I have a property in NSW which my PPOR initially (lived there for till 2009).
I moved out in 2010 and my 6-year CGT exemption is due in 2015-2016.

I am thinking about transferring my PPOR to DFT with corporate trustee
due to nature of my job (for asset protection purpose).

I understand that it will incur stamp duty and land tax in the future plus mortgage related fees.

I tried to search in the forum and unable to find out step by step of how to transfer the property (i.e. how to get a valuation - from realestate agent vs. valuer)

Can someone enlighten me on how to do it?

Thank you
 
Transfer of property needs a valuation.. From a property valuer. OSR need it for duty. A solicitor or conveyancer can assist for a low fee.

Before acting it would be worthwhile getting personal tax advice that confirms the 6yr exemption. Do you own any other property you have lived in after moving from that property ? Or a spouse / defacto or same sex partner ?? I have seen plenty come unstuck on that.
 
Hi

I have a property in NSW which my PPOR initially (lived there for till 2009).
I moved out in 2010 and my 6-year CGT exemption is due in 2015-2016.

I am thinking about transferring my PPOR to DFT with corporate trustee
due to nature of my job (for asset protection purpose).

I understand that it will incur stamp duty and land tax in the future plus mortgage related fees.

I tried to search in the forum and unable to find out step by step of how to transfer the property (i.e. how to get a valuation - from realestate agent vs. valuer)

Can someone enlighten me on how to do it?

Thank you

Are you aware that the property could still be at risk even if you transfer?
 
Can someone enlighten me on how to do it?

Thank you

Sellers into into a contract with purchaser. Purchaser obtains finance borrows money and pays seller. Title changed.

Asset protection will be weakened or increased depending on the steps take and how they are taken.
 
Transfer of property needs a valuation.. From a property valuer. OSR need it for duty. A solicitor or conveyancer can assist for a low fee.

Before acting it would be worthwhile getting personal tax advice that confirms the 6yr exemption. Do you own any other property you have lived in after moving from that property ? Or a spouse / defacto or same sex partner ?? I have seen plenty come unstuck on that.

Hi Paul,

Yes, I did get a personal tax advice from my accountant. He advised me for 2 reasons
1. asset protection
2. Minimise the future rental income tax
 
Unless I tried to hide it from litigator or event occurred prior to transfer, then I will be liable.

Not sure what that means. Look at s 37A of the conveyancing act nsw (and equiv in other states) and also ss119-121A of the bankrupcy act. How the transactions are conducted will be important too - movement of money etc.
 
Sellers into into a contract with purchaser. Purchaser obtains finance borrows money and pays seller. Title changed.

Asset protection will be weakened or increased depending on the steps take and how they are taken.

Hi Terry

I agree that it is better to purchase the property directly into DFT with corporate trustee. However, I dont have crystal ball to predict the future when I purchase my 1st property 10 years ago.

I tried to protect myself from medico-legal litigation due to nature of my job
 
Hi Terry

I agree that it is better to purchase the property directly into DFT with corporate trustee. However, I dont have crystal ball to predict the future when I purchase my 1st property 10 years ago.

I tried to protect myself from medico-legal litigation due to nature of my job

Yes i agree. It can still provide good asset protection going forward, but must be set up right.
 
Transfer of property needs a valuation.. From a property valuer. OSR need it for duty. A solicitor or conveyancer can assist for a low fee.

Before acting it would be worthwhile getting personal tax advice that confirms the 6yr exemption. Do you own any other property you have lived in after moving from that property ? Or a spouse / defacto or same sex partner ?? I have seen plenty come unstuck on that.

I have seen property transfer without an official valuation. OSR accepted duty on the appraisal which was comprehensive, with three or more comparables within 3(?) months. Maybe that is because valuers pull their comparables from the same database as agents anyway.

Unless the rules have changed (or are different state to state) you can save the cost of an official valuation. And don't try to be tricky.
 
Few people have the inclination to muck around to comply with the valuation requirements to save $250+. This delays transfer and wont save any duty. Even then I have seen OSR just refuse and ask for a "valuation report". There is more to a valuation than just local comparison prices. Zoning, LEP changes, new approved development nearby may all be relevant.

For NSW see Revenue ruling DUT 012 and s305 NSW Duties Act
 
Hi Paul

I do agree with you to get a valuer to value property for ~$300-500
and can always mention to the valuer that it is for "transfer - special purpose" to the trust and
hopefully, the valuer would value at the lower end of market
 
Also a good idea to use a valuer for asset protection reasons - you want to make sure it is not an under market value transaction.

Think of the possible consequences of aiming for a low valuation too.:)
 
Few people have the inclination to muck around to comply with the valuation requirements to save $250+. This delays transfer and wont save any duty. Even then I have seen OSR just refuse and ask for a "valuation report". There is more to a valuation than just local comparison prices. Zoning, LEP changes, new approved development nearby may all be relevant.

For NSW see Revenue ruling DUT 012 and s305 NSW Duties Act

I didn't suggest trying to save money or duty - just that for a simple transfer from one name to another you dont need a valuer.
 
I didn't suggest trying to save money or duty - just that for a simple transfer from one name to another you dont need a valuer.

What may appear simple is often not - it is always a good idea to get a valuation done so as to defend yourself against any allegations of under market value transactions - in my opinion. So although not needed it may still be a good idea.
 
What may appear simple is often not - it is always a good idea to get a valuation done so as to defend yourself against any allegations of under market value transactions - in my opinion. So although not needed it may still be a good idea.

I agree that could be raised depending on circumstances. It comes down to purpose. I am about to transfer a property to my name. We will have no need of a paid valuation. We will pay duty properly. Nothing tricky.

I am not suggesting this be done in all circumstances but merely pointing out that paying for a valuer is not always necessary or a requirement to change ownership.
 
Back
Top