IPs transsferred into a DT ???

Hi all

Can someone confirm for me this point regarding a discretionary trusts ?

I have a few IPs in my name, I am considering tranferring them into a DT for protection against possibly being sued, tax benifits etc. (I am starting a building, development company)

I am of the understanding i would not incur stamp duty expenses if I am the trustee of the trust i transfer them into or the director of the pty ltd company which is the trustee. The reason i believe this is that there is no change in the legal benifit (ownership/control) of the propertys

Can someone pls shed some knowledgabe light on this for me

Thanx in advance,
Builder
Fortune favours the brave....

 

The whole point of asset protection via a discretionary trust is to put the assets beyond your "control" and so these assets are not available to potential creditors.

In which case full stamp duty as well as CGT is required.

This is one of the up-front costs you must consider versus the future benefits.

Cheers,

Rob

 

I appreciate the response

Thanx Rob,

 

You would then also either need to gift the proceeds to the trust or gift the property into the trust.
Either way CGT & ST duty would apply + possibly land tax thereafter
NickM