Just a quick question……
How do trusts purchas property?
I have a friend who is a settlment clerk in Sydney. She has told me that you can not register a title in the name of a trust. That is, the name on the title must be ‘Mark Smith and Jane Smith’ and not ‘The Smith family trust’.
Is this correct? I’m sure there are many people out there that can clear this up for me.
Thanks,
Simon
Simon
The title would normally read John Smith & Jane Smith ATF for the Smith Family Trust or Smith Pty Ltd ATF the Smith Family Trust dependant who the Trustee was.
Cheers Richard
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She is correct. The land titles office only records the trustee against the title. It is not XYZ ATD The ABC Trust it is merely XYZ. If it is an individual as trustee then the individual will be on the title if a company then the company.
As Coastymike said its the pty ltd Co on the title..
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One more though…..
If the individual goes on the title, as coastymike has stated above referring an individual as a trustee, then how does the ATO or anyone else know if the property is in a trust or privately owned?
Trust property is said to be legally owned by the trustee, with the beneficial or equitable ownership lying with the trust’s beneficiaries. The trust is not technically a separate legal entity, and as such cannot own property on its own. Hence, all property is owned in the name of the trustee – whether an individual trustee or a trustee company.
The name on a property’s certificate of title will be that of the trustee’s (with no mention of the trust). The trustee should record the fact it is holding the property on trust and place such a record (e.g. trustee company minutes) in the trust register.
The trustee owns the trust assets in name only – the benefit of those assets (enjoyment of them) is the sole exclusive right of the beneficiaries of the trust.
CATA
Asset Protection Specialist
[email protected]Cata,
Could you please explain the “trust register”? Is it something special or just the trust’s minutes piled into a folder?
The trust minutes kept in a plastic sleve with the trustee deed, as any changes must have a record. Nothing special, a minute entry is sufficent.
CATA
Asset Protection Specialist
[email protected]Hello Cata,
If I can absorb some info from you be greatly appreciated, and no doubt it has already been posted here.(me being new).
Whats the benefits of setting up a trust (associated costs) and pruchasing future ip through a trust?
Cheers
Hi AussieLad
Welcome to the site.
A brief outline of advantages for owning Assets in a trust,
– Asset Protection, NSW and Qld are the second and fifth most litigated states in the WORLD per capita
-Estate Planning, you can will the trust to someone else without transfer costs.
– Tax Planning, you should not be paying more than 30% in most cases.This could save thousands.
I will PM you.
CATA
Asset Protection Specialist
[email protected]Thanks CATA,
That clears it up for me.
Some solicitors also recomend a caveat be placed on the title of the property after settlement to indicate it is owned by the trustee in its capacity of trustee to the trust. This can help establish that the property was originally owned by the trust – in case of a future dispute.
Terryw
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