ive learned so much from stalking this forum but this is my first post. So I hope I'm putting this post in the right space.
10 years ago my parents 'gifted' land to my brother who took out a mortgage to build a house on the land and rented it to my parents. Since then my parents have separated and the house now sits vacant. My brother wants the house off his portfolio so he can purchase a home for his growing family.
Since the land originally belonged to my parents they want to be sure that we can split the profits for their children (there are 3 of us). So we were thinking of transferring the property to a Family Trust controlled by a company of which Us 3 siblings are Directors.
My question is: Is this the best option? Will my brother get slapped with huge CGT therefore not worth the trouble? Or do we just sell the property, pay the CGT and just deposit the profits into the Trust.
Ideally we would like to transfer to the trust, rent it out and draw the equity for other IPs.
10 years ago my parents 'gifted' land to my brother who took out a mortgage to build a house on the land and rented it to my parents. Since then my parents have separated and the house now sits vacant. My brother wants the house off his portfolio so he can purchase a home for his growing family.
Since the land originally belonged to my parents they want to be sure that we can split the profits for their children (there are 3 of us). So we were thinking of transferring the property to a Family Trust controlled by a company of which Us 3 siblings are Directors.
My question is: Is this the best option? Will my brother get slapped with huge CGT therefore not worth the trouble? Or do we just sell the property, pay the CGT and just deposit the profits into the Trust.
Ideally we would like to transfer to the trust, rent it out and draw the equity for other IPs.