I’ve just finished reading Steve’s Wealth Guardian which finally clarified trusts for me, but I still have a few questions;
1. Can I set up a Trust and than later set up the company to be a Trustee, i.e. change over the Trustee. Or do I have to do it all in one hit. (Until I hit the ground running, I’d prefer not to have the expense of my own company).
2. In QLD can I transfer the ownship of our home into my partners name only without paying tax on the changeover?
3. If we did (number 2), and my defacto (gee I hate the term defacto) partner of ten years dies, under this structure, can his family take our home away from me? ( We haven’t drawn up a will yet but we are working on it).
Thanks for your help.
Hi Agave
Yes your are able to change the Trustee of the Trust (Subject to the rules of the Trust with a minute) from a personal trustee to a corporate trustee.
Regretfully in Qld even if you transfer the property to your partner under the “Love and Affection” Terms you still incur the relevant stamp duty and also dependant on the property this could trigger a CGT issue.
You might be better to transfer it directly into the Trust.
I am no lawyer so think you are better off to get legal advice but think it will boil down to ther terms of the will. You should also consider taking out a Term Life policy on his life with yourself as the beneficial owner. This would at least mean if anything happened to him you would at least received the property debt free.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Trustees can be changed easily, but just remember if the trust owns assets there will be a lot of paperwork – titles will need to be changed (the trustee is the legal owner) and loans will need to be changed into the new trustees names.
Terryw
Discover Home Loans
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Thanks QLD007. Just on the matter of transfering to my partner, if we were married (instead of De facto) could we then transfer the home to his name only (currently in both) without getting slogged tax?
Terryw, that’s a good point, that extra paperwork will cost me.
Thanks guys! [thumbsupanim]
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