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IPs transsferred into a DT ???

Discussion in 'Accounting, Tax & Legal' started by builder, 15th Jul, 2008.

  1. builder

    builder New Member

    Joined:
    13th Jul, 2008
    Posts:
    2
    Location:
    ringwood,victoria
    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....
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    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
     
  3. builder

    builder New Member

    Joined:
    13th Jul, 2008
    Posts:
    2
    Location:
    ringwood,victoria
    I appreciate the response

    Thanx Rob,
     
  4. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
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    Location:
    Sydney
    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