Trust - Asset Transfer

[DKinvestments]

Hello everyone,

I purchased a block of land 15 months ago and the value has almost doubled (i bought it at a very good price).

I Know that if i sell it now i will have to pay CGT on the gain. I'm trying to gain more of a understanding about Trust Structures and thanks to Dale G's great book, Trust Magic, I'm slowly getting somewhere.

My main question is :

The block of land was purchased in my name and now I want to transfer it to my HDT, do i just pay for the stamp duty on the transfer?

How about the selling price? if i purchased the land at 150k originally, can i then resell it to my Trust at the same price? Can I sell it for 20k less for example?

Sorry for all the questions but i'll squeeze one more....

If the asset is now owned by the trust and if
I decided to sell it, no CGT and gains can be distributed to the benificiaries?

Dan

 

[redwing]

I'll put my 0.05c opinion in..

My main question is :

The block of land was purchased in my name and now I want to transfer it to my HDT, do i just pay for the stamp duty on the transfer?
I'd presume so, plus settlement costs and the costs of setting up your HDT

How about the selling price? if i purchased the land at 150k originally, can i then resell it to my Trust at the same price? Can I sell it for 20k less for example?
Would that be fair market value if not you may get burnt..

Sorry for all the questions but i'll squeeze one more....

If the asset is now owned by the trust and if
I decided to sell it, no CGT and gains can be distributed to the benificiaries?
Yes..CGT applies? However profits can be distributed to lower total tax paid

Dan
Sounds like a rather convoluted process Dan, do the sums and see whether its worth it IMHO

My above posts are just personal opinions, I would definetly speak to someone like Dale "prior" to making a move..

 

[DKinvestments]

Thanks For that Redwing,

what's the CGT rate when selling trust assets?

I thought u dont have to pay CGT if it's a trust asset

 

[Terry_w]

Any transfer of title is a CGT event and it would be assessed at market value. Trusts generally don't pay tax as the income flows through to the beneficiaries who pay tax at their marginal rates.