Gifts to DFT

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

Carlito
Participant
@carlito
Join Date: 2010
Post Count: 31
July 9, 2011 - 6:12 am
Hi All,
I was wondering if someone could help me with the following question:
If I've gifted money to the family trust to buy shares, once I sell theses shares and withdraw the money out of the trust back to me – how is this transaction treated?
As it's a gift to the trust, the money now belongs to the trust and is keep as an asset in the trust instead of it owing me back the money given – as it's not a loan.
Does it then become income to me as I've withdraw the money out of the trust bank account or does it then become the trust lending me money and I owe it back?
I know if I've loan the money to the trust then it would just reduce the balance the trust owed me. With you gift the money is where I'm a bit confused.
Your comment would be much appreciated
Thanks
Carlito
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 9, 2011 - 12:23 pm
If the trust deed allows it the trustee may make gifts.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Carlito
Participant
@carlito
Join Date: 2010
Post Count: 31
July 10, 2011 - 6:03 am
Hi Terry,
Thanks for your response.
How is it dealt though when withdrawing funds from the trust when you have gifted the money to it instead or loaning it?
Carlito
colinnewland
Participant
@colinnewland
Join Date: 2006
Post Count: 128
July 10, 2011 - 8:27 am
The Trustee can distribute the funds as income or capital or as a loan. Check what is allowed in the trust deed. If its not what you want, check to see if you can amend the trust deed to achieve the ends you want.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 10, 2011 - 8:41 am
The trustee of the trust just makes a resolution to do XXX and records this. I just read one of my deeds and the trustee is allowed to transfer any of the funds to any beneficiairy.or make a loan to any beneficiary on any terms.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Carlito
Participant
@carlito
Join Date: 2010
Post Count: 31
July 10, 2011 - 9:28 am
Hi guys!
Now I getting a better understanding!
Thanks guys for your time as always!
Carlito
PS Terry what part of the deed did you have thoses terms- under what heading?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 10, 2011 - 9:34 am
That would me under trustee powers
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Carlito
Participant
@carlito
Join Date: 2010
Post Count: 31
July 10, 2011 - 9:43 am
Thanks Terry!!
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 10, 2011 - 10:16 am
Sorry for the spelling mistakes, I was on my iphone when writing. I meant to say
That would be under trustee powers
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au