All Topics / The Treasure Chest / Changing trustee of the trust ??

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  • Profile photo of BorisSBorisS
    Participant
    @boriss
    Join Date: 2003
    Post Count: 20

    Dear All,

    Has anybody ever changed trustee for their trust?
    And if you did, did it have any implication in terms of stamp duty or CGT?

    Boris

    “A good accountant is the one that on question how much is 2×2 answers how much do you want it to be?”

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    The rules about changing the trustee will be outlined in the trust deed.

    I can’t see why there would be a stamp duty/CGT issue as the assets are not be disposed of.

    Bye,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of BorisSBorisS
    Participant
    @boriss
    Join Date: 2003
    Post Count: 20

    Thank you Steve.

    I think so too and hope for the best.

    Boris[8D]

    “A good accountant is the one that on question how much is 2×2 answers how much do you want it to be?”

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Hi Boris

    Steve, if this is classed as a resettlment of the deed of trust, then this may trigger the payment of stamp duty as the beneficial owner of the property has changed and it you could be up for capital gains tax. Is this not the case?

    And I am not sure what would happen to the loans (if any) held by the trust. Would they have to be discharged and retaken out in the new trustee’s name?

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BorisSBorisS
    Participant
    @boriss
    Join Date: 2003
    Post Count: 20

    Terry,

    You are right about re-doing the loan in the name of the new trustee.

    However, in regards to the first sentence, I think it might only happen when beneficiaries change not trustees ?

    Boris

    “no pain, no gain!”

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Boris

    I hope you are right, but…

    Usually the beneficiaries are listed vaguely such as any spouse of X (Tustee), and children, relative etc. So if the trustee changes, then the beneficiaries will also change.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of LakshmiPropertyInvestorsLakshmiPropertyInvestors
    Member
    @lakshmipropertyinvestors
    Join Date: 2002
    Post Count: 30

    I’ve changed Trustee of my TRust.
    It’s no big deal.
    It’s as simple as one driver getting out of a bus and a new driver getting in.
    There was no stamp duty or CGT.
    The only minor hitch was that the bank wanted to see the Trust Deed before it would allow a new account, to ensure that it allowed for a change of Trustee.
    The Trustee is only the manager of the Trust, which owns the assets.
    The beneficiaries do not own the assets, the Trust does, so changing the Trustee does not alter the ownership of the assets. Nor does changing the Trustee change who the beneficiaries are, they remain the same.
    Go ahead and do it, but make sure there’s something in the fine print that says you can, and also have your current Trustee write a minute authorising the change.
    Regaards.
    Andrew scott

    Profile photo of BorisSBorisS
    Participant
    @boriss
    Join Date: 2003
    Post Count: 20

    Thank you Andrew!

    That makes sense.

    Boris

    “no pain, no gain!”

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Thanks Andrew! Thats good news.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

Viewing 9 posts - 1 through 9 (of 9 total)

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