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Dear Terry,
Thanks for your post, more questions though!
Does this mean that the beneficiary pays CGT on the distribution? I hear wha you say that with a trust you have to wait 12 months before getting the CGT 50% exemption.
Then if I were to buy in my personal name and sell capital within the 12 months would I be entitled to the CGT exemption?
Look forward to hearing from you,
Thanks! Peta DeGreyMy mother in law passed away recently and has left a villa in South Hurstville to my husband and brother. It was valued 3 years ago at $440,000 when she took out a Seniors Loan against the equity. The amount currently owed on the Loan is $120,000. Both my husband and brother in law have agreed for me to find a finance company to arrange for a loan to pay back St George their $120,000. And also to establish a line of credit against the rest of the equity to enable further property investments.
The property was bought in 1989. How will capital gains tax affect my husband and his brother in this case:
1. If the property were to be sold.
2. If my husband and brother in law keep the property as tenants in common.
My understanding is that perhaps the only way my brother in law and husband could be Joint tenants would be if I were able to come on title with my husband. Is that possible?
Otherwise tenants in common would be ok. but the issue of the loan remains. Could then an agreement be drawn up to the effect that my brother in law agrees for my husband and I take responsibility for the $120,000 loan and in return allow us to have access to the equity over the rest of the property for property development . We could then come to some agreement to pay him for his remaining 1/2 share of equity at a later date. Also the agreement could allow for my brother in law to continue being able to live in the home.
Thanks
PetaMy mother in law passed away recently and has left a villa in South Hurstville to my husband and brother. It was valued 3 years ago at $440,000 when she took out a Seniors Loan against the equity. The amount currently owed on the Loan is $120,000. Both my husband and brother in law have agreed for me to find a finance company to arrange for a loan to pay back St George their $120,000. And also to establish a line of credit against the rest of the equity to enable further property investments.Who can refinance the St George loan to enable a line of credit on the rest of the equity?
Is there anything we need to be aware of when the estate is finalised?
How should my husband’s brother set up his will?
What are the tax implications when the estate is finalised?
Qlds007 wrote:Mark Scenario 2 is correctHouse worth $330 000
80% is $264 000
minus loan $130 000
Amount available $134 000remember many lenders go past 80% on a Line of Credit.
