Hi All, My dad is coming up to retirement age and wants to divest his assets (apart from PPOR) He currently owns an investment property (in VIC) worth around 400k with outstanding mortgage of 130k. He has owned it since 2000 My brother and I are thinking of subdividing and building townhouses to rent/sell 1. Can he gift the property to my brother and I? What happens to the mortgage? 2. What is the best way of minimising the CGT/stamp duty seeing as though we will knock down the existing house? 3. Is it worth the hassle of establishing a hybrid trust to own the properties with my brother and I and spouses as benefeciaries? Does it allow for the flexibility of one couple selling while other keeps leasing the property? I believe there is an advantage for income distribution as the properties will be positively geared. 4. Finally how do we minimise CGT when the subdivided properties eventually sell? Is there a limit to the 6 month rule for CGT exemption and what tax implications are there if there is no income in that period relating to the hybrid trust? I see that many members on this forum are very knowledgeable in this area and would appreciate some guidance before we put anything into motion. Thanks!