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Gifting to a Trust

Discussion in 'Accounting, Tax & Legal' started by OLI, 21st Aug, 2007.

  1. OLI

    OLI Well-Known Member

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    15th Aug, 2005
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    96
    Hello all,

    I'd like to make a gift to my family trust. Is this usually done using a Deed of Gift document? I did a search on Google and found a Deed of Gift for the University of NSW (attached). Is this the sort of thing I should be typing up, or better yet can anyone post a template I can have a look at?

    Thanks, OLI.
     

    Attached Files:

  2. Rob G.

    Rob G. Well-Known Member

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    Melbourne, VIC
    Hi OLI,

    A deed of gift for a University is much more important due to the possible tax exempt nature of the trust and the abilitiy of the donor to claim a tax deduction for the gift.

    However, normally a written declaration made to the trustee which is acknowledged in trust minutes should be enough - BUT this subject to any requirements of the trust deed and any legislation.

    Certain property may not be legally transferred except in writing - e.g. real property via conveyance.

    In Australia you even need advice before you give your assets away !!

    Give your Accountant a phone call if unsure ...

    Cheers,

    Rob
     
  3. MattR

    MattR Well-Known Member

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    OLI

    I'm not a solicitor so take my comments accordingly.

    It looks OK to me.

    Remember, for bankruptcy, the trustee in bankruptcy will ignore this Gift if its within, Hmmm, three years from memory.

    Any Legal Egales about?
     
  4. OLI

    OLI Well-Known Member

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    Hi Rob and Matt,

    I think I'll use my own amended version of the University deed of gift which will probably be more of a written declaration. I will also record receipt of the gift in the Trust minutes.

    Thanks for your help,

    OLI
     
  5. Rob G.

    Rob G. Well-Known Member

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    Hi OLI,

    Just checked a few details.

    If your gift is personalty (i.e. non-real estate) but capable of producing income then a presumption is that it is held on trust for you (i.e. not a true gift).

    An old fashioned phrase used to be favoured for voluntary gifts of realty to strangers, "unto and to the use of ..." .

    Don't know how legally effective this phrase is nowadays.

    Cheers,

    Rob
     
  6. Rob G.

    Rob G. Well-Known Member

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    Don't forget possible CGT on any assets gifted by the donor.

    And maybe stamp duty for the trustee ?

    Cheers,

    Rob
     
  7. OLI

    OLI Well-Known Member

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    Hi Rob, thanks for pointing out these other considerations. Fortunately I am only gifting cash to the trust so it should be straight forward.

    Cheers, OLI.
     
  8. MattR

    MattR Well-Known Member

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    I accept Gifts of a cash nature
     
  9. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Me too! Me too!

    Mark
     
  10. DaveA

    DaveA Well-Known Member

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    Location:
    Sydney, NSW
    no paperwork required...