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Changing name of beneficiary of a deceased estate from an individual to a trust

Discussion in 'Estate Planning' started by Occasional Visitor, 12th Jun, 2011.

  1. Occasional Visitor

    Occasional Visitor New Member

    Joined:
    12th Jun, 2011
    Posts:
    1
    Location:
    Melbourne, Vic
    My late father died before being able to make a change to his will that we had discussed. His will has left a large parcel of unlisted shares to me as the named beneficiary. What I would have much preferred was for the shares to pass directly into my family trust - which would have allowed far more favourable tax treatment on future dividends and capital gains as these could be streamed to other family members.

    Is it possible for the shares to be transferred direct to my family trust; without it being deemed as a disposal by me (and hence triggering a major capital gain) ?
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    I don't think it can be done without triggering a CGT event, but I may be wrong. Your cost base will probably be the cost base of your dad, when he purchased them.

    A beneficiary of a will can transfer their entitlement to a post death testamentary trust (with CGT applying I think) and then have the income from this trust treated as excepted trust income. This will enable the income to be distributed to children at adult rates meaning up to $16,000 pa tax free for each kid.

    Lots of restrictions apply, but it is certainly worth looking into.
    INCOME TAX ASSESSMENT ACT 1936 - SECT 102AG,



    INCOME TAX ASSESSMENT ACT 1936 - SECT 102AG Trust income to which Division applies