Join our investing community

Direction needed on situation

Discussion in 'Accounting, Tax & Legal' started by BladeCA, 1st Sep, 2006.

  1. BladeCA

    BladeCA Member

    Joined:
    31st Aug, 2006
    Posts:
    16
    Location:
    Sunshine Coast QLD
    Hi everyone. Have only recently found this site and am glad I have. Learnt so much from it already and best part is it was things that I was looking for. Although there are still some areas I can't find answers to but if I ask someone maybe be able to solve the mystery for me. :D

    I'm currently going through a property settlement for a marriage breakup :( . At the end of it my home will be transferred into my name and I will take over the mortgage. The loan will be about 135k with the prop valued around the 200k mark. It is an ideal place for renting out and because I want to invest I would like to swap this to an IP down the track. Now I will be setting up a HDT for my IPs to go into but what I am trying to find out is it possible for me to set the trust up and when the settlement goes through have it transferred to the trust instead of me. Thus i don't have to do it when I buy another place of residence and change this to an IP. This should also prevent any future ex partners from making a claim on the property that I have paid for while it is still my place of residence.

    1)If i can't put it into the trust now is there a way of transferring it to the trust later at a minimal cost.
    2)Also is it possible for me to protect it from future ex partners(hopefully that wont happen but I like to setup counter measures) before it goes into the IP HDT

    Thanks
     
  2. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Hi Blade

    Nigel will be 'the man' on this one. But hazarding a guess, if you transfer it into your own name there might be some form of stamp duty exemption based on the marriage breakup (although I am pretty sure I got stuck for stamp duty 12 years ago, when going through a similar situation, in Qld). As you are only transferring a portion of the value, at worst it should only be payable on the transferred amount (think it might also come down to if you are joint tenants or tenants in common on the title) - need to check with :
    1. Your solicitor
    2. The Office of State Revenue
    3. Nigel ! (preferred and much more knowledgeable and patient option).

    As asset protection seems to be your main concern, HDT is probably a good option. However, as you would be transferring the entire value - yours and your ex's - into a new entity in the HDT, you'd be paying Stamp Duty on the entire sale price.

    Having said that, might be just as easy to sell it as your PPOR exempt from all CGT etc, then start afresh with a deposit on a new PPOR and all future IP's in HDT ? Having your PPOR in a HDT probably isn't a good idea, but then its not as insulated from being sought by ex-partners, in which case you might be better off renting :eek: and using the cash in your investments under the HDT structure.

    By the way Family Law Court stuff (or whatever the proper term is!) unravels any sort of legal structuring, so having a HDT does not necessarily protect your assets from ever being accessed by someone (for example if child support was needed).

    Nigel will clarify because I've probably got the wrong end of the stick somehere, but welcome to InvestEd anyway ;-)

    Cheers
    Carl
     
  3. BladeCA

    BladeCA Member

    Joined:
    31st Aug, 2006
    Posts:
    16
    Location:
    Sunshine Coast QLD
    Thanks Carl

    The main reason for asking about putting it in the HDT now was really so I don't have to do it later and get the paper work changed when I move and start renting it. The protection was more of a bonus (no child support needed woohoo). Guess when I want to move I just sell it to the trust then all values should be correct and easier to keep track of expenses then I suppose.

    It shouldn't be to far away before settlement is done. I've really got to find a good FP and accountant so that I can start my investments as soon as possible. Can anyone recommend any at the sunshine coast or I'll even drive to brisbane if they are good and are worth the money. Cause i see now as a perfect time for me to start. I'm only 25, got a good paid job, can save money well, have cash lying around and a fair bit of equity in my house when I get it.
     
  4. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Hi Blade

    I'm in Brisbane, and NickM based in Sydney is our accountant, who I highly recommend if you're focussing on wealth creation. If I had been fortunate to meet him when I was your age I would unlikely be working for a living now :p

    Nick comes up here semi-regularly, and in fact the tyranny of distance helps make sure our record keeping is better than it would otherwise be :)

    Cheers
    Carl

    PS - EDIT - sorry - NickM on this forum, being Nick Moustacas at www.strategicwealth.com.au
    :p
     
  5. BladeCA

    BladeCA Member

    Joined:
    31st Aug, 2006
    Posts:
    16
    Location:
    Sunshine Coast QLD
    Hi Carl

    Thanks for the help again. Looks like Nick provides all the services that I'm looking for. I really don't think that the accountants in my neck of the woods would really be alot of help from what I hear. Most just seem to do glorified tax reurns for people and charge a fortune. Anyway Sydney is not that much further than brisbane when you take a plane :D . To me a plane trip is nothing if i am able to achieve my financial goals.

    Cheers
    Glenn
     
  6. KevinH

    KevinH Well-Known Member

    Joined:
    6th Nov, 2005
    Posts:
    101
    Blade,
    You can always try Julia from Bantacs.
    I think she is still in Caboulture.
    Very well informed and informative, especially with regard to property.

    Try their website as a first option:

    http://www.bantacs.com.au

    Kevin