Transfer property to kids after divorce

[economist99]

Does anyone have experience transferring property to family after marriage breakdown? I am filling in the OSR forms to pass some of my IPs to my husband and daughter, and want to know if it's all so simple as it seems. Is the CGT event dated from the OSR form or the agreement. I drew up our property agreement on my own; is this allowed?

Also - the ATO told me my daughter's rental income will be NOT taxed at the kids rate, which is a massive bonus - as she is an exempted person. Children can be exempted from kids tax for various reasons, including this, having worked 30hr/wk for 3m, and being disabled - anyone aware of this?

TIA

 

[Paul@PFI]

Title

The punitive tax rate for minors applies to some "unearned" income. Passive interest and dividend income is generally taxed at 66% and the tax free threshold is just $416. You are referring to "excepted income of a minor". For example inheritance money from a deceased estate is also exempt from this measure. This is an area a tax agent may assist as its easy to get the labels wrong and get thumped with tax. basically you include all the income then declare the value that is excepted.

I would also consider getting a solicitor to handle the land title issues. If you stuff it up you could have full duty imposed or even DOUBLE duty when its fixed. OSR arent very tolerant of DIY efforts and the courts frequently have to handle people appealing to AAT on decisions where duty has been imposed on a mistake. Most arent successful.

 

[marg4000]

My daughter bought a house from a divorcing couple. Things were grim and the whole process was very difficult as the two partners would not speak to each other and each had their own solicitors.

She was told that the money from the sale was being put into trust for the child of the marriage.
Marg

 

[Terry_w]

Does anyone have experience transferring property to family after marriage breakdown? I am filling in the OSR forms to pass some of my IPs to my husband and daughter, and want to know if it's all so simple as it seems. Is the CGT event dated from the OSR form or the agreement. I drew up our property agreement on my own; is this allowed?

Also - the ATO told me my daughter's rental income will be NOT taxed at the kids rate, which is a massive bonus - as she is an exempted person. Children can be exempted from kids tax for various reasons, including this, having worked 30hr/wk for 3m, and being disabled - anyone aware of this?

TIA

Many issues here.
Are you trying to transfer property under a family law agreement - without triggering CGT? If so your husband will inherit the tax liability.

How old is your daughter and is her disability serious? Are you talking a special disability trust here?